Did you know that business lunches (and other meals) are 50% deductible? Many people think they are 100% deductible. But it is only 50%. However if you’re audited, and can’t prove that the lunch was for business, then the deduction might be allowed at all.
So how do you prove that it was a business lunch?
Will the IRS take your word? NO
Will a receipt prove it? NO.
Will the say so of your long lost brother’s uncle be sufficient? NO
What can you do to prove that a certain was for business? You can use the receipt to record the date, the time, who you went to lunch with, and what you discussed. That will be sufficient proof. Or you can keep a tax diary.
