The deduct-ability of the cost of client meals is murky under the new tax law.
So there is a sharp divide forming among tax practitioners on this issue. Some say that client meals, such as at a restaurant for a business dinner or a post-golf lunch at a country club, are 50% deductible if business is conducted or discussed.
Others are not so sure and take a more conservative position that client meals can no longer be written off until IRS comes out with guidance saying otherwise.
I side with those that say client business meals remain 50% deductible, provided the meals aren’t so lavish that they rise to the level of entertainment.
But on the safe side, business owners should track all of their receipts in a separate ledger accounting for the specific type of meal or entertainment expense.