Is Team Meals Tax Deductible for Your Business?

Yes, team meals 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 team meals typically qualifies when used for legitimate business purposes.

Key Rules for Deducting Team Meals

Routine team lunches during meetings are 50% deductible. Company-wide events like holiday parties or summer picnics open to ALL employees are 100% deductible.

Requirements to Claim This Deduction

• Routine meetings: 50%
• Company-wide social events (all employees invited): 100%
• Keep receipts and attendee lists

How to Document Team Meals for Tax Purposes

Proper documentation is critical for any business deduction. For team meals, 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 § 274(e)(4). This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.