Not all meals are deductible! Find out what qualifies as a business meal in 2025, the rules for documentation, and how to maximize your tax deductions legally.
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Grabbing coffee with a client. Taking your team out for lunch. Hosting a dinner for potential investors. These can all be business meals — but are they tax-deductible?
As we move into 2025, the IRS continues to keep a close eye on business meal deductions. If you’re a small business owner, freelancer, consultant, or entrepreneur, understanding what counts as a legitimate business meal is crucial. Not only can it reduce your tax bill, but it can also protect you from audits and penalties.
Let’s break it all down in simple terms — from the IRS rules to real-life examples, plus smart tips for tracking and documenting your meals properly.
A business meal is any meal that occurs in a business setting or for a business purpose and involves a discussion, meeting, or transaction related to your trade or business.
In 2025, the IRS allows a 50% deduction for most business meals — but only if you follow the rules.
To deduct a meal as a business expense, the IRS requires the following conditions to be met:
The meal must be common and helpful to your business. Taking a client to lunch or discussing strategy with your business partner qualifies. Ordering champagne for a random brunch with your cousin? Probably not.
Tip: “Ordinary” means it’s typical in your industry; “necessary” means it helps your business in some way.
You must be there in person. You can’t pay for your client’s dinner and claim it as a deduction if you didn’t attend.
No, you don’t need to eat fast food. But a five-course dinner at a luxury resort might raise red flags — unless it’s justifiable in your line of work (e.g., high-end clients in a luxury industry).
This includes:
A “business associate” is anyone you could reasonably expect to engage in a business relationship with.
After the temporary 100% deduction for restaurant meals during the COVID-19 recovery period (2021–2022), the IRS has returned to the standard 50% deduction.
However, one key update in 2025:
Example: You host a Zoom strategy call with a client, then meet them later that week for lunch to follow up. If you can show both meetings were business-related, the meal counts.
Let’s look at some real-life examples to make this clearer:
If you're on a business trip, you can deduct 50% of your meals — whether you're eating alone or with others.
💡 Tip: The IRS lets you choose between deducting actual meal costs or using a standard per diem rate.
In 2025, the standard meal per diem for most locations in the U.S. is around $68/day, though it can be higher in major cities.
The IRS requires you to maintain contemporaneous documentation — that means you need to record details close to the time the meal happened.
Pro Tip: Use apps like QuickBooks, Expensify, or Keeper Tax to snap receipts and tag expenses in real time.
If you attend a networking event, seminar, or trade show, and meals are included in the ticket price, you generally:
If the food is “incidental” (like coffee and snacks at a seminar), no separate deduction is needed.
If you go to dinner with a friend who’s also a client or prospect, it only qualifies if business was genuinely discussed and the intent was primarily business.
💡 Pro Tip: Document the business discussion in a note or calendar entry to support the deduction.
If you’re a sole proprietor, freelancer, or gig worker, you’re still eligible for business meal deductions — the same rules apply. In fact, many IRS audits target sole proprietors because of vague or inflated meal claims.
Be extra diligent with documentation and only deduct meals that meet all the criteria.
Business meal deductions in 2025 remain a smart tax-saving strategy — but only if you stay within the lines.
By knowing what qualifies, tracking everything properly, and staying organized, you can confidently take advantage of every allowable deduction. Whether you're a startup founder grabbing coffee with a client or a seasoned tax pro on a work trip, every dollar saved counts.
✅ The meal is ordinary and necessary
✅ You were present at the meal
✅ It wasn’t lavish or extravagant
✅ It was with a business associate
✅ You have proper documentation (date, amount, who, where, why)
✅ You deducted only 50% unless it's a company party or taxable compensation
If you're unsure about what counts or want help organizing your deductions for tax season, consider working with a tax professional. They can help you:
Bottom Line: Business meals are still deductible in 2025 — and done right, they can lower your taxable income significantly. Just bring the receipts (and the right documentation), and you’ll keep the IRS and your wallet happy.
No. The temporary 100% deduction for restaurant meals ended in 2022. As of 2025, the IRS allows a 50% deduction for most business meals, unless the meal falls under an exception (such as meals provided at a company holiday party or meals included in taxable employee compensation, which may be 100% deductible).
You need to document:
Use apps like Expensify or QuickBooks to make this process easier and audit-proof.
Only if you’re traveling for business. Meals eaten alone during business travel (overnight or requiring rest away from home) are deductible at 50%. Meals eaten alone at your home office or local café during a regular workday are not deductible unless you’re meeting with a business associate.
Yes — as long as they meet the standard business meal rules. For example, ordering lunch for a virtual strategy meeting with your team or a client counts. Document the purpose, attendees (if applicable), and keep the digital receipt with details.
Only if the primary purpose of the meeting was business and the person qualifies as a business associate (e.g., a client, contractor, or potential partner). If it was mostly social and business was just casually mentioned, it doesn’t qualify for a deduction.
Being audited is comparable to being struck by lightning. You don't want to practice pole vaulting in a thunderstorm just because it's unlikely. Making sure your books are accurate and your taxes are filed on time is one of the best ways to keep your head down during tax season. Check out Vincere's take on tax season!
This post is just for informational purposes and is not meant to be legal, business, or tax advice. Regarding the matters discussed in this post, each individual should consult his or her own attorney, business advisor, or tax advisor. Vincere accepts no responsibility for actions taken in reliance on the information contained in this document.
For business tax planning articles, our tax resources provides valuable insights into how you can reduce your tax liability now, and in the future.
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