What is Meals and entertainment?
In short
Business meals are 50% deductible if they aren't lavish and the taxpayer or an employee is present. Entertainment, such as sports tickets or golf, isn't deductible at all.
Key takeaways
- Meals at a company party for all employees are fully deductible.
- Meals provided to employees as taxable compensation, or sold to customers, are fully deductible.
- Food bought at an entertainment event is deductible only if stated separately.
Where it's tested
REG: Individual Taxation: Adjustments & Deductions — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A taxpayer's business meal expenses incurred while entertaining a client at a restaurant are generally: