Are meals and entertainment tax deductible?
Usually: meals 50%, client entertainment 0%. Ordinary business meals can still be deductible, but sports tickets, golf, concerts, and similar client entertainment are generally not. If food is provided at an entertainment event, the meal can still qualify when it is purchased separately or shown separately on the bill.
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On this page: Short answer · What changed after 2017 · What counts as entertainment · Meals at entertainment events · Why separate meal charges matter · Schedule C · Example · Records · Related lookups · FAQ
Short answer
Business meals are generally 50% deductible. Ordinary client entertainment is generally not deductible. Taking a client to a game, concert, golf outing, or similar recreational event does not become deductible just because you discuss business there.
Food or beverages at an entertainment event can still be treated as a business meal when they are purchased separately from the entertainment or shown separately on the bill.
What changed after 2017
Before 2018, many business entertainment costs could qualify for a 50% deduction when the tax rules were met. Current rules generally disallow ordinary client entertainment, while qualifying business meals can still be 50% deductible.
| Expense type | Current general rule |
|---|---|
| Business meal with a client or prospect | Generally 50% deductible |
| Sports, concert, or theater tickets for a client | Generally not deductible |
| Golf or other recreational outing with a client | Generally not deductible |
| Club dues for entertainment or recreation | Generally not deductible |
| Food at an entertainment event, purchased or stated separately | Generally 50% deductible |
| Qualifying employee holiday party or similar employee social event | May qualify for 100% |
The distinction matters because one outing can contain both deductible and nondeductible costs. A $200 game ticket can be nondeductible while a separately billed $80 client dinner before the game can still produce a $40 meal deduction.
A clear business reason does not restore the deduction for ordinary client entertainment. Limited exceptions exist for certain expenses—such as some employee recreational or social events—so the page uses “generally” rather than treating every entertainment expense the same.
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 counts as entertainment
The IRS treats activities that provide amusement or recreation as entertainment. For ordinary client entertainment, examples that are generally not deductible include:
- Sports tickets and sporting events
- Concert and theater tickets
- Golf rounds and similar recreational outings
- Hunting or fishing trips with clients
- Country club, golf club, or athletic club dues
- Skyboxes, luxury suites, bowling, escape rooms, and similar client entertainment
A strong business purpose does not, by itself, turn ordinary client entertainment into a deductible expense.
Can you deduct food at an entertainment event?
Sometimes. The meal can still qualify when the food or beverages are purchased separately from the entertainment or their cost is shown separately on the bill, invoice, or receipt.
Examples
- Dinner at a restaurant before a client game — separate restaurant bill
- Food at a stadium that is separately stated from the ticket price
- A separately billed meal at a conference or event
- A suite package includes tickets and food in one price with no separate food amount
- A ticket package includes food but the meal cost is not separately stated
- You estimate your own food amount from a combined entertainment charge
Why a separate meal charge matters
When food is provided during or at an entertainment event, the IRS rule looks at whether the food was bought separately or its cost was stated separately from the entertainment. If you want to preserve a possible meal deduction, keep a receipt or invoice that clearly separates the food and beverage amount.
For example, a restaurant dinner before a basketball game is clearly separate from the ticket cost. A stadium suite invoice can also separate food from tickets. But if one package price covers both the suite and food with no separate meal amount, you generally cannot create your own food estimate afterward just to claim a deduction.
Separate charges make the tax treatment much easier to support and keep the deductible meal amount distinct from the nondeductible entertainment amount.
Where these expenses go on Schedule C
- Deductible business meals: Schedule C, Line 24b (Meals)
- Nondeductible client entertainment: Do not include it on Line 24b
Keep meals separate from entertainment in your records so the deductible and nondeductible amounts are easy to identify.
Example: Client event with meal and entertainment costs
Taking a client to a baseball game
- Two baseball tickets: $180 → $0 deductible as ordinary client entertainment
- Dinner before the game on a separate receipt: $95 × 50% = $47.50 deductible
- Stadium food separately stated from the ticket charge: $30 × 50% = $15 deductible
- Total deductible meal amount: $62.50 → Schedule C, Line 24b
The separate meal charges matter. If the food were bundled into one entertainment price and not separately stated, that food amount would generally not qualify as a separate business-meal deduction.
What records to keep
- Meal records showing the amount, date, and place
- Who attended and the business relationship
- The business reason for the meal when it is not obvious from the surrounding records
- Separate bills or line items when food is provided at an entertainment event
- Entertainment invoices kept separately from deductible meal expenses
The IRS generally does not require documentary evidence for a non-lodging expense under $75, but you still need records that support the amount and business nature of the expense. For larger charges—especially combined event packages—an itemized invoice is important because it shows whether the food was actually stated separately.
A credit-card statement proves that you paid something; it may not show what portion was food, entertainment, or another charge.
TurboTax — Report business meals correctly on Schedule C
TurboTax applies the 50% meal limitation and keeps entertainment expenses separate — so only the deductible meal costs flow to Schedule C Line 24b.
IRS sources
These rules are based on current IRS guidance for business meals, travel, entertainment, and employer-provided meals. For the source rules, see IRS Publication 463, Schedule C instructions, and, where employee meals are involved, IRS Publication 15-B.
FAQ
Are meals and entertainment tax deductible?
Business meals are generally 50% deductible when the IRS business-meal rules are met. Ordinary client entertainment — such as sports tickets, concerts, golf, or similar recreational activities — is generally not deductible. Food at an entertainment event may still qualify as a meal when it is purchased separately or shown separately on the bill.
Are sports tickets tax deductible as a business expense?
Generally no. Sports tickets bought for client entertainment are generally nondeductible even when there is a business reason for attending. A separately purchased or separately stated business meal connected with the event may still be generally 50% deductible.
Can I deduct a meal at a game or event with a client?
Usually yes at 50% if the meal otherwise qualifies and the food or beverages are purchased separately from the entertainment or their cost is stated separately on the bill, invoice, or receipt. If food is bundled into one entertainment price and is not separately stated, it generally does not qualify as a separate meal deduction.
Are any entertainment expenses still deductible?
Yes, limited exceptions can apply. For example, certain employee recreational or social events, such as qualifying holiday parties or picnics primarily for employees rather than owners or highly compensated employees, can fall outside the general entertainment disallowance. Ordinary client entertainment remains generally nondeductible.
What records should I keep for meals near entertainment expenses?
Keep records showing the meal amount, date, place, attendees, and business relationship or purpose, plus a receipt or invoice that separately states the food when it occurs at an entertainment event. The IRS generally does not require documentary evidence for a non-lodging expense under $75, but you still need records supporting the business expense.
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Last reviewed: August 18, 2026