What are the limits on the amounts deductible for Meals and Entertainment incurred for business travel?
According to the IRS, "Meal expenses are deductible only if your travel requires you to be away from home overnight or if the meal is business-related entertainment." Taxpayers can determine their travel meal expenses using either of the following methods:
If taxpayers use this method, they must keep records of the actual cost.
2)The standard meal allowance which is the federal M&IE rate.
These rates are listed on the GSA website.
However, taxpayers should note that the deduction for unreimbursed business meals is generally subject to a 50% limitation.