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Business Meal Deductions in 2025 and 2026

Business Meal Deductions in 2025 and 2026
Business Meal Deductions in 2025 and 2026
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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

Kaizen CPAs works with auto repair shops across the country. We know running a successful shop takes more than keeping the bays full. We help shop owners understand their numbers, stay ahead of taxes, and build stronger, more profitable businesses. Auto repair is at the heart of what we do, but we bring the same practical, hands-on approach to businesses in other industries, too.

YPD HCM is part of the Kaizen CPAs family. YPD HCM helps small businesses manage payroll, HR, and compliance with the right tools and personal, human support—from payroll and tax filings to onboarding, employee management, and more. It’s practical help for the people side of your business, from a team that’s there when you need them.

The information in this article is provided for general educational purposes and reflects conditions as of the publication date. It is not legal, tax, accounting, payroll, HR, or compliance advice. Every business is different, so talk with a qualified professional about your specific situation.

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