How to avoid the 50% business-meal disallowance rule

Let them eat cake!… but make sure they eat it on your business premises.

Seriously, where you entertain, eat a meal, or hold business meetings matters a lot to Uncle Sam and determines how big a deduction you can claim.

For example, if you go out and party with your employees, you can enjoy a 100% deduction. But if you have a genuine business meeting with your employees at a restaurant, you can only claim a 50% deduction!

I know that this doesn’t make a lot of sense, but don’t forget… we’re dealing with the IRS!

Want to learn how to handle things the right way? Read my new article titled Tax Tips: Increase Tax Deductions for Business Meals at Employee Meetings.

Three ways our fact-filled article can help you:

1. You’ll learn why a restaurant can be a dangerous place. Let’s say you have a monthly lunch meeting at a restaurant and spend the entire time working on business. The employees are all on the clock and get paid for attending. It doesn’t matter. As far as the IRS is concerned, your meeting is considered “entertainment” and the meals are subject to the 50% disallowment rule. I’ll explain this in detail when you read the full article.
2. We’ll tell you how “convenience” can get you a 100% deduction. According to the IRS, all is well if you provide the meals to your employees “for your convenience” and at your premises. You’ll get the whole story when you read the full article.
3. We’ll tell you another smart way to avoid the 50% disallowance. It’s easy. Treat your deduction for the employee meal as an employee welfare benefit. (It doesn’t count as a meal in your business’s tax return!) You’ll learn about this and much more when you read the full article.