As of 2018, Entertainment is no longer a deductible business expense. However, deductions for the cost of meals may still be deducted if it is necessary to properly perform duties required on the job and must be considered "non-entertainment-related".
It is the responsibility of the business owner/taxpayer to maintain adequate records that will substantiate the ordinary and necessary business purpose of the meals expense deductions. In general, meals are normally 50% deductible. However, meals considered in appearance to be lavish or extravagant are not allowed to be expensed for business purposes. The service has the right to disallow the deduction should the taxpayer fails to maintain adequate substantiation.
For more specific information visit the IRS.gov website (Publication 463) or contact our firm for clarification.