Business meals are meals that are consumed during the course of business operations, and can include client entertainment, business meetings, and meals during travel. They are typically deductible expenses under certain tax regulations.
Entertainment expenses and business meals are deductible only if they are 'directly related to' or 'associated with' the active conduct of a taxpayer's trade or business. These expenses are deductible to the extent of 50% of cost, excluding any lavish or extravagant costs.
A comprehensive document detailing the expenses incurred by a salesperson or executive, including categories such as transportation, lodging, meals, and client entertainment, typically submitted for employer reimbursement.
A derisive term for lavish lunches characterized by having three martinis and claimed as tax-deductible business expenses. The three-martini lunch became a symbol for business extravagance and resulted in 1993 tax act provisions making only 50% of the cost of business meals deductible for tax purposes.
