Hello, Evelyn here again talking about food deduction whilst traveling. Now, there is a difference between meal deduction when you’re eating locally and when you’re eating travel… While traveling. Some business owners think that when they stop for breakfast time on their way to work, that meal is deductible. I’ve needed to catch it a couple of times in my clients’ books.
But that notion is wrong. Because entertainment and food are deductible will not imply every single meal you eat out is deductible. If you’re not participating in the business meeting while local, then your meal is deductible only when you’re traveling for business. An end in the McDonalds on the way to work is not just a deductible meal expense.
To be considered a business travel food, the travel is for business required, the travel is perfect for a business purpose, it’s required by the business. Day of work The travel must be for more than one. So in other words, you’re spending overnight and the rest or sleep is necessary, which means you can meet the needs of your work.
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Meals consumed for non-business purposes in the ordinary course of the business day is not deductible, while eating meals eaten while traveling for business purpose is deductible. So quite simply, you don’t reach go out to eat with your lady and write up as a meal expense. The rest of us don’t get to do it Now, which means you don’t reach to do it for business.
So special rules: When traveling, you can choose to deduct foods by using real expenditures or a per Diem rate. Employees may also be reimbursed with per Diem rate. So if your employees travel on your behalf, you can also reimburse them with a per Diem rate. Either real way, records documenting actual expenses must be kept.
You must keep the information because the IRS could demand your information anytime, it’s a requirement. 60 if it’s an inexpensive area, and here, I put a web link to the IRS notice teaching you the actual high-cost areas are. If you need to find to see where you’re traveling to and the actual rate is, you can look at that notice. 75 or the meal… And that’s while traveling.