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
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]