Fine Dining for the Sell – The IRS Gets Their Just Desserts

Client Dinners as Tax Write-Offs: What’s Allowed and What’s Not

Client dinners can be a valuable tool for building relationships, closing deals, and growing your business. But can you deduct these meals as a business expense? The answer is yes—with a few caveats.

Under IRS rules, you can write off 50% of the cost of meals if they’re considered “ordinary and necessary” for your business. This generally includes client dinners, provided they’re directly related to or associated with your business activities. That means discussing business matters or entertaining current or potential clients with the genuine goal of benefiting your business.

If you use your boat for business purposes, such as entertaining clients or even running a charter To qualify, you’ll need to keep good records, including the date, location, attendees, and purpose of the meal. Also, remember that lavish or extravagant expenses aren’t deductible—so, while a nice meal is fine, try to keep it within reason.

Since recent tax law changes, 100% of meal costs may be deductible if purchased from a restaurant, but check with a tax professional to see if you qualify for the full deduction.

So, go ahead and enjoy those business dinners, just keep it professional—and don’t forget the receipts!