🍽️Food Meals

Coffee

IT DEPENDS
0% solo / 50% with client

No if solo, Yes (50%) if meeting with a client or prospect.

Details

Coffee purchased while working alone at a cafe is a PERSONAL expense ('fueling the body'). Coffee bought for a client meeting IS 50% deductible as a business meal.

Conditions

  • Solo: NOT deductible (personal expense)
  • With client/prospect discussing business: 50% deductible
Deductible Example

Buying coffee for a potential client to pitch services (50%)

Not Deductible Example

Daily latte while coding alone at Starbucks

Common Mistakes to Avoid

  • Thinking 'working on laptop at Starbucks' makes your latte deductible
Source: IRC § 262 (Personal Expenses); IRC § 274

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Is Coffee Tax Deductible for Your Business?

Whether coffee is tax deductible depends on how you use it and your specific business situation. The IRS evaluates deductibility based on whether the expense is ordinary and necessary for your particular trade or business.

Key Rules for Deducting Coffee

Coffee purchased while working alone at a cafe is a PERSONAL expense ('fueling the body'). Coffee bought for a client meeting IS 50% deductible as a business meal.

Requirements to Claim This Deduction

  • Solo: NOT deductible (personal expense)
  • With client/prospect discussing business: 50% deductible

How to Document Coffee for Tax Purposes

Proper documentation is critical for any business deduction. For coffee, 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: IRC § 262 (Personal Expenses); IRC § 274. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.

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