As a general rule, most businesses can only deduct 50% of business meals. There are several exceptions to this rule. One exception is the “Convenience of Employer” rule.
How it works:
To achieve the 100% deduction, you have to serve the meal on your businesses premises, and you have to have provided the meal for “your business convenience”.
- Meals are served to make employees available for emergency calls
- Meals are furnished so that the employee can work through their lunch-break
- There are insufficient eating facilities in the vicinity and you want to keep your employees working instead of driving around looking for food
- Meals are furnished for some other substantial non-compensatory business reason (you are furnishing the meals for a business reason and not simply to give the employee a “bonus”