Are meals and entertainment tax deductible?
Meals yes, entertainment no. The Tax Cuts and Jobs Act (TCJA) eliminated the entertainment deduction for tax years after 2017. Business meals remain 50% deductible when separately itemized — but sports tickets, concerts, golf outings, and theater tickets are no longer deductible at all.
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On this page: Short answer · The 2017 rule change · What counts as entertainment · Meals at entertainment events · The separate itemization rule · Schedule C · Example · Records · Related lookups · FAQ
Short answer
Meals: 50% deductible. Entertainment: 0% deductible. The TCJA eliminated the entertainment deduction for tax years beginning after December 31, 2017. Business meals with clients remain 50% deductible when there is a business purpose — but the entertainment component of any combined expense is not deductible.
If a meal and entertainment occur together, the meal may still be 50% deductible if it is separately stated on the bill. A combined charge cannot be split after the fact.
FreshBooks — Track meal expenses separately from entertainment costs
Categorize business meals and entertainment separately throughout the year so your Schedule C Line 24b deductions are correctly calculated at tax time.
What changed in 2017: The TCJA entertainment deduction elimination
Before the Tax Cuts and Jobs Act (TCJA), business entertainment was 50% deductible when it was directly related to or associated with business. Taking a client to a sporting event, golf outing, concert, or show was a legitimate 50% business deduction.
| Expense type | Before 2018 | After 2017 (current) |
|---|---|---|
| Business meals with clients | 50% deductible | 50% deductible |
| Sports tickets with clients | 50% deductible | 0% — not deductible |
| Concert/theater tickets with clients | 50% deductible | 0% — not deductible |
| Golf rounds with clients | 50% deductible | 0% — not deductible |
| Club membership dues (entertainment) | 50% deductible | 0% — not deductible |
| Meals eaten at an event (separately stated) | 50% deductible | 50% deductible (if separately itemized) |
The TCJA change is permanent under current law — it applies to all tax years after 2017. There is no business-purpose exception that restores the entertainment deduction. Even taking a client to a game with a clear business purpose yields a $0 deduction for the tickets.
What counts as entertainment under IRS rules
The IRS defines entertainment broadly as any activity that provides amusement, recreation, or pleasure. The following are not deductible as entertainment expenses for tax years after 2017:
- Sports tickets — NFL, NBA, MLB, NHL, golf tournaments, tennis, and other sporting events
- Concert and theater tickets — music, Broadway, comedy shows
- Golf rounds with clients — green fees, cart fees, caddie fees
- Hunting or fishing trips with clients
- Country club or athletic club dues (even if used for client meetings)
- Skyboxes and luxury suites at sporting venues
- Bowling, escape rooms, or recreational activities with clients
The key test is whether the activity provides amusement or recreation. If it does, it is entertainment under the IRS definition — and not deductible regardless of business purpose.
Meals at or during entertainment events: Can you still deduct the food?
Yes — but only if the meal cost is separately stated on the bill or invoice. This is the critical distinction that allows partial recovery of the expense.
When meal costs at an entertainment event are deductible
- You take a client to a sporting event and buy dinner at a restaurant before the game — the restaurant meal is separately billed and 50% deductible
- You take a client to a conference or trade show with a separately invoiced dinner — the dinner is 50% deductible
- A stadium or venue provides food on a separate line item on the invoice — that food amount may be 50% deductible
When meal costs at an entertainment event are not deductible
- A suite or box package includes food and tickets in a single combined price — the entire amount is non-deductible
- A club membership fee includes dining privileges — the dues are non-deductible
- You try to estimate the food portion of a combined entertainment package — estimated splits of a combined charge are not accepted; only separately stated amounts qualify
The separate itemization rule — why receipts matter
The IRS requires that meal costs be separately stated on the invoice or receipt to be deductible when they occur alongside entertainment. You cannot estimate what the food portion of a combined charge was and split it yourself.
If you attend an event with a client and want to preserve a meal deduction, request separate checks or obtain an itemized receipt that clearly shows food and beverage costs distinct from ticket or event costs.
Practical tip: When hosting a client at an event, book the pre-event or post-event dinner separately — a restaurant meal before a game is on a completely separate receipt and is 50% deductible with no ambiguity about combined charges.
Where these expenses go on Schedule C
- Business meals (50% deductible): Schedule C, Line 24b (Meals) — enter the full amount, software applies the 50% limit
- Entertainment (0% deductible): Not reported on Schedule C — these are not deductible and should not be entered as business expenses
Keep entertainment receipts in your records for context, but do not attempt to claim them as a business expense. The TCJA disallowance is absolute — there is no partial claim, no business-purpose exception, and no Schedule C line for entertainment.
Example: Client event with mixed meal and entertainment costs
Example: Taking a client to a baseball game
- Two baseball tickets: $180 → $0 deductible (entertainment, post-2017 rule)
- Dinner at a restaurant before the game (separate receipt): $95 × 50% = $47.50 deductible → Schedule C Line 24b
- Concession food at the stadium (listed separately on stadium invoice): $30 × 50% = $15 deductible → Schedule C Line 24b
- Total deductible: $62.50 out of $305 total spent
Pre-2018, the same $305 expense would have generated $152.50 in deductions (50% of everything). The TCJA change cut the deduction by 59% on this type of client event. The key to preserving any deduction is keeping the meal costs on a separate receipt.
What records to keep
- Separate itemized receipts for meal costs and entertainment costs
- Proof of payment for each (card statement or bank record)
- For meal receipts: date, location, attendees, and business purpose
- Entertainment receipts: keep for context but do not claim as a deduction
- If purchasing a combined package: note that no meal deduction applies and keep the invoice showing the combined charge
TurboTax Self-Employed — Report business meals correctly on Schedule C
TurboTax Self-Employed applies the 50% meal limitation and keeps entertainment expenses separate — so only the deductible meal costs flow to Schedule C Line 24b.
FAQ
Are meals and entertainment tax deductible?
Business meals are 50% deductible when they have a clear business purpose. Entertainment — sports tickets, concerts, golf outings, theater tickets — is generally not deductible at all for tax years after 2017. The Tax Cuts and Jobs Act eliminated the entertainment deduction. Meals eaten during or adjacent to entertainment may still be 50% deductible if separately itemized on the receipt.
Are sports tickets tax deductible as a business expense?
No. Sports tickets and other entertainment costs are not deductible for tax years beginning after December 31, 2017. The TCJA eliminated the entertainment deduction even when the purpose is clearly business-related. Taking a client to a game was once 50% deductible — it is now 0% deductible.
Can I deduct a meal at a game or event with a client?
Potentially yes — but only the meal portion, and only if it is separately itemized on the bill. Food purchased at a restaurant before the game, or food listed as a separate line item on an event invoice, may be 50% deductible as a business meal. A combined charge that bundles tickets and food cannot be split — only separately stated amounts qualify.
What changed about the meals and entertainment deduction in 2017?
The Tax Cuts and Jobs Act, effective for tax years beginning after December 31, 2017, eliminated the deduction for entertainment expenses entirely. Before 2018, business entertainment was 50% deductible when directly related to business. After 2017, entertainment is 0% deductible regardless of business purpose.
What records should I keep for meals near entertainment expenses?
Keep separate itemized receipts for meal costs and entertainment costs. For each meal, document the amount, date, location, attendees, and business purpose. Entertainment receipts are not deductible but keeping them demonstrates the separation between the deductible meal and the non-deductible event costs.
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Last reviewed: April 14, 2026