The allowable amount of meal and entertainment expenses you are allowed to deduct on your Schedule C is determined by the line of work you are in.
- For most taxpayers, the IRS allows you to deduct 50% of your business meals and entertainment expenses, including meals incurred while away from your home on business.
- If you are subject to the Department of Transportation (DOT) hours of service limits, the allowable deductible percentage is increased to 80% for business meals consumed, or related to, any period of duty for which those are in effect.
