Business meals: the 50% rule
Per IRS Publication 463, you can generally deduct 50% of the cost of a business meal when the meal isn't lavish, you (or an employee) are present, and it's with a business contact or during business travel. That means:
- Lunch with a client to discuss work — 50% deductible.
- Dinner alone while traveling overnight for business — 50% deductible.
- Your everyday lunch at your desk — not deductible.
You record the full amount in your books; the 50% limit is applied on the tax form (Schedule C line 24b). Tax software does the math — what it needs from you is the meal correctly labeled as a business meal.
Travel: away from home overnight
Travel expenses are deductible when your work requires you to be away from your "tax home" (your regular place of business) substantially longer than a workday — in practice, overnight. Deductible travel costs include:
A day trip across town isn't travel — but the mileage may still be deductible (see Track business mileage). And a trip that's partly vacation: only the business portion counts.
Entertainment: mostly not deductible anymore
Since the 2017 tax law took effect in 2018, tickets to games, golf outings, and similar client entertainment are generally not deductible, even when business is discussed. One nuance from Publication 463: food and beverages bought separately during an entertainment event can still qualify for the 50% meals deduction — but the event itself does not.
Why these need better records
Meals and travel are categories the IRS expects documentation for: the amount, date, place, and business purpose. A receipt photo plus a short note ("lunch with supplier re: fall order") is exactly enough — and exactly what Tidy Orders keeps. Forward the receipt or snap it at the table, and the detail is attached to the transaction before you forget it.
How this maps in Tidy Orders
Tidy Orders has dedicated subcategories for Meals, Travel, and Entertainment under operating expenses. Meals roll up to Schedule C line 24b (where the 50% limit is applied), travel to line 24a, and entertainment is flagged as generally non-deductible so you can review it with your CPA instead of assuming.
From the IRS
- Publication 463 — Travel, Gift, and Car Expenses — the 50% meals rule, "away from home," and entertainment.
- Instructions for Schedule C — lines 24a and 24b.
This guide is education, not tax advice. For your specific situation, talk to a CPA or enrolled agent.