Is Wine / Alcohol Tax Deductible for Your Business?

Yes, wine / alcohol is generally tax deductible for self-employed individuals, freelancers, and small business owners. The IRS allows you to deduct ordinary and necessary business expenses, and wine / alcohol typically qualifies when used for legitimate business purposes.

Key Rules for Deducting Wine / Alcohol

Deductible as part of a meal if not 'lavish or extravagant.' Applies when alcohol is consumed during a business meal with clients.

Requirements to Claim This Deduction

• Must be part of a business meal
• Cannot be lavish or extravagant
• Keep itemized receipts

How to Document Wine / Alcohol for Tax Purposes

Proper documentation is critical for any business deduction. For wine / alcohol, you should:

• Keep all receipts and invoices showing the amount paid
• Record the date of the expense and the business purpose
• If mixed-use, maintain a log showing business vs. personal usage
• Store records for at least 3 years (7 years for major purchases)

Source: IRS Publication 463. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.