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Category: Income

Should I enter my Meals and Entertainment expenses as 50% or 80%?

The allowable amount of meal and entertainment expenses you are allowed to deduct on your Schedule C is determined by the line of work you are in.

* For most taxpayers, the IRS allows you to deduct 50% of your business meals and entertainment      expenses, including meals incurred while away from your home on business.

* If you are subject to the Department of Transportation (DOT) hours of service limits, the allowable deductible percentage is increased to 80% for business meals consumed, or related to, any period      of duty for which those are in effect.