1 min read

Business Meal Deductions in 2025 and 2026

Picture of The Kaizen Team The Kaizen Team · January 02, 2026

tax strategy
Business Meal Deductions in 2025 and 2026
Business Meal Deductions in 2025 and 2026
0:48
 

The rules around business meal deductions have tightened, and confusion is costing business owners real money. In this Kaizen Time discussion, Mark and Pierre walk through what meals are still deductible, which deductions are disappearing, and how the IRS applies the “ordinary and necessary” standard in real life. If you’re assuming meals are still an easy write-off, this conversation is worth your time.

Most business meals are only 50% deductible in 2025, and some deductions disappear entirely in 2026. Whether a meal is deductible depends on who attended, why it occurred, and whether it meets the IRS “ordinary and necessary” standard.

Key Takeaways

  • Which business meals are still 100% deductible and why

  • When meals drop to 50% deductibility, even if business is discussed

  • Why entertainment is no longer deductible, but meals sometimes are

  • What changes in 2026 could eliminate deductions businesses rely on today

  • How the IRS actually evaluates “ordinary and necessary” expenses

Related Resources

How Charitable Donations Impact Tax Deductions

Denied Deductions for Inadequate Records

Save on Taxes with a Work Vehicle

3 Tax Strategies Your CPA Could Be Missing

Your Payroll Department (YPD) is part of the Kaizen CPAs family. YPD specializes in payroll and HR compliance for small businesses, providing the hands-on support to get your people paid and stay compliant without having to become an expert yourself.

The information in this article is provided for general educational purposes and reflects conditions as of the publication date. It does not constitute legal, tax, or compliance advice. For guidance specific to your business, consult a qualified professional.

The I-9 Errors That Used to Get a Warning Now Get a Fine

The I-9 Errors That Used to Get a Warning Now Get a Fine

Most business owners know they're supposed to collect an I-9 when they hire someone. What a lot of them don't realize is how easy it is to get it...

payroll + hr + compliance
Read, Watch, or Listen →
Why Business Growth Isn’t Linear (and What Actually Happens Instead)

Why Business Growth Isn’t Linear (and What Actually Happens Instead)

Most business owners picture growth as a straight line. Work hard, get results, keep climbing. But that's not really how it plays out in practice. ...

business strategy
Read, Watch, or Listen →
Why Your Paper Timecards are a Liability (and How to Fix It)

Why Your Paper Timecards are a Liability (and How to Fix It)

I am sitting here looking at a standard piece of 8.5 by 11-inch white paper. To most people, it is just a tool for notes. But in the world of...

payroll + hr + compliance
Read, Watch, or Listen →