Grab your coffee—this matters. If your Small Business has been writing off meals like it’s still 2022, it’s time for a reality check. Deduction rules have shifted again, and your books need to keep up.
What Actually Changed?
The temporary 100% deduction for restaurant meals has expired, bringing most expenses back to the 50% rule. The IRS confirms that “the amount allowable as a deduction for food or beverages generally may not exceed 50%” of the expense.
Translation: that $200 client dinner? Only $100 is likely deductible now.
The 2026 Curveball You Didn’t See Coming
Here’s where it gets interesting—and a little painful. Starting in 2026, many everyday workplace food perks (think coffee, snacks, and team lunches) may become non-deductible altogether unless specific exceptions apply.
Client meals and travel meals? Still 50% deductible.
Holiday parties and company-wide events? Still 100% deductible (finally, some good news).
What Still Qualifies (and What Doesn’t)
Likely Deductible
- Client or prospect meals with business intent
- Travel-related meals
- Company-wide employee events
- Entertainment (sports, concerts, golf outings)
- Many employer-provided meals and snacks starting 2026- including your office-wide supplied coffee grounds
Not Deductible
Don’t Let Deductions Go Cold (Conclusion)
Tax rules don’t wait—and neither should your books. Whether you need cleanup or ongoing support, a proactive Bookkeeping service can save you real money. Contact BudgetEase today—because guessing your deductions is about as risky as ordering the “market price” item without asking first.
Sources & Credits
¹ HRMM&L, “Business Meal & Snack Deductions Are Changing in 2026”
² IRS, “Topic No. 511: Business Travel Expenses” (https://www.irs.gov/taxtopics/tc511)
³ IRS, “Meals and Entertainment Expenses Under Section 274” [hrmml.com] [irs.gov] [irs.gov]
