By Jan Owens

If you are a writer then taking someone to lunch or dinner can be a business expense. Breakfast, lunch or dinner with fellow writers, editors, publishers, agents, lawyers, accountants or those you are interviewing for research for writing assignments can all be considered a deductible business expense, as long as the meal is not extravagant.

Here are 3 key questions to ask about the business meal:

1. Is the main purpose of the meal the active conducting of business?
2. Did you discuss your writing business with the person during the meal?
3. Did you have a general expectation of some specific writing business benefit or a general expectation of getting income as a result of meeting with this person or group of people?

If you can answer yes to these questions then you have a business expense.

As with all business expenses, it is important to keep good records in case you are ever questioned by the Internal Revenue Service.

According to IRS Publication 463, all that is required for documentation for business meals is as follows:

“A restaurant receipt is enough to prove an expense for a business meal if it has all of the following information.

1. The name and location of the restaurant.
2. The number of people served.
3. The date and amount of the expense.”

You do not have to show that any business income or other business benefit actually resulted from the meal.

You might also want to make a note of the names of the people at the meal, along with a brief comment about the nature of business. This will help to jog your memory if you are asked to explain or justify your deductions years later.

The deduction includes the price of the meal plus any tips or taxes added to the final total. Note that on your tax return business meal deductions are generally limited to 50% of the total bill.

You can refer to IRS Publication 463: Travel, Entertainment, Gift and Car Expenses for further discussion and details.

Jan Owens works in the WinePress Accounting Department.