Can You Deduct That Latte? A Fun Guide to Business Meals & Expenses

We get it — being a business owner means a lot of coffee runs, client lunches, and maybe even the occasional “meeting” over margaritas. But here’s the million-dollar (okay, maybe hundred-dollar) question: when can you actually deduct those meals and expenses on your taxes?

Spoiler: not every croissant counts. Let’s break it down.

What Counts as a Deductible Meal?

To deduct food or drinks, the IRS says the expense must be:

1. Business-related. You’re talking shop — meeting with a client, supplier, or business partner.

2. Ordinary and necessary. A sandwich shop? Yes. A 7-course steakhouse dinner with a disco ball? Probably not (unless that’s really how your industry rolls).

3. Not lavish. Keep it reasonable. Think “nice lunch” not “champagne fountain.”

💡 Pro Tip: Meals with your employees (like staff lunches or team-building treats) can also qualify.

What’s Off the Table (Literally)

Not everything you eat or drink is deductible. These don’t make the cut:

• Your daily coffee fix (unless you’re meeting a client or networking).

• Groceries for your home kitchen.

• Meals with friends that have zero business purpose (sorry, brunch doesn’t count unless you’re also closing deals).

  
  

Don’t Forget the Paper Trail

The IRS loves documentation. Save your receipts and jot down:

• Who you met with

• The date

• The purpose of the meeting

  
  

Proving that burger was a business burger = smooth sailing if you’re ever audited.

The Bottom Line

Yes, you can deduct business meals — but only when they’re connected to actual business. When in doubt, ask yourself: Was this food helping me grow, run, or improve my business? If the answer’s yes (and you’ve got the receipt), you’re good to go.

At FinancialsIQ, we keep it simple: you focus on running your business, and we’ll help make sure your deductions (meals included) are legit and stress-free.

👉 Ready to reimagine your bookkeeping? Book a free call today.