Meals for which the business is reimbursed for the expense

Meals for which the business is reimbursed for the expense. For example, if a business takes a client to lunch and then bills the client for that lunch in a separate line item on the invoice, then the business can fully deduct that meal. Ever wonder why some accountant or attorney invoices show the meals expense as a separate line item? Because it makes the meal expense fully deductible to them and makes it 50% deductible to the client! Be careful if you are on the receiving end of this invoice! If the meal expense is  MBT Tariki not specifically itemized on the invoice (and just lumped into the service fee), then the meal is only 50% deductible to the business and 100% deductible to the client. *Important Tip: When it comes to preparing your tax return, it's easy to forget which meals met the requirements to be 100% deductible.

And if your tax preparer has never asked you this it most likely means all of your meals are being subject to the 50% limitation ! It's best to capture this information when you actually have the meal. You can do this by setting up two meal expense accounts in your books: Meals - 50% deductible Meals - 100% deductible Simply code it the proper account when you enter it in your accounting MBT Kimondo GTX, program (such as QuickBooks). Then it's all ready for your tax preparer with no additional work!