![]() In that case, the snacks you buy are tax-deductible. Say you’re a security guard on a 1099 contract, and you’re not supposed to leave your post all day. Rule of thumb: if eating on the job is not a requirement for employment, then it's not a deduction. These examples may seem like no-brainers, but they're not actually qualified deductions. Unfortunately, you can't deduct all the food that you consume on the job. In case of an audit, you'll want to make sure to keep some record of what was discussed. After all, most people get referrals from someone they already know! This could be a friend, neighbor, or family member.įor a quick reference, check out our meal deduction guide below! This cheatsheet is available to print in color or black and white using the buttons below. Meeting with other professionals to network or swap tips is a great way to grow your business. ✓ A networking opportunity with anyoneĭon't miss out on this one! It's very important to stay on top of the latest news and trends in your industry. When you grab a meal with a friend who might be interested in signing up as your referral, that’s a tax write-off. Upwork, Uber, and others can pay up to $500 per referral. Many freelance work platforms offer rewards for getting others to sign up. It’s a write-off! ✓ Meeting with a potential referral Talking shop with them over a meal is bound to help you learn about your industry and catch up on best practices. You don’t need to sign contracts at the table for lunch with them to count as a business meal.įor a self-employed person, this can be anyone in your line of work. Past coworkers and friends in similar industries could all eventually turn into prospective clients - or introduce you to one. ✓ Wooing a prospective clientīuilding and maintaining your network is critical to maintaining your business. You don’t even need to pay for the other person’s meal. If you go out for lunch with a client, work will come up in the discussion. So we'll breaking down what counts - and what doesn't. There's some ambiguity in the phrase “similar business contact”. ![]() The IRS guidance on business meals notes that “the food and beverages" must be "provided to a current or potential business customer, client, consultant, or similar business contact.” Now that we've gotten that out of the way, let's talk about how to take that deduction.
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