Expenses for business meals and entertainment are deductible at 50%. To claim these, they must be reasonable (not extravagant) and directly related to conducting current or future business.

Heads up: Although you don't need receipts for meals and entertainment expenses under $75, it's important to keep good records documenting the business purpose of the meal or event.

Examples include:

  • Meals while traveling for business

  • Meals and entertainment expenses when you attend conventions, trade shows, business conferences

  • Tickets, food, drinks for entertaining associates at sporting events, shows, plays, concerts, nightclubs

  • Greens and court fees for sports activities with business associates

  • Hosting a group business dinner at your home

  • Hosting a group business dinner at a restaurant or private club

  • Meals for potential customers or clients (at home or out)

  • Meals during hunting, fishing, rafting, skiing or similar outings with business colleagues

  • The cost of meals and entertainment for a business associate's spouse (and your own, if other spouses are attending)