Under the Tax Cuts and Jobs Act, business owners can deduct 50% of their meal-related expenses. These include:
- Water, coffee and snacks in a company break room
- Meals provided during meetings or seminars
- Meals during business travel
Meals provided for an office party are 100% deductible (2021). Meals consumed as part of a leisure activity or entertainment when no business is being conducted are not deductible.
Entertainment expenses are no longer deductible. These include:
- Sporting events and tickets
- Leisure activities
- Club memberships