Tax Tips for Writers: Business Meals

We welcome back accounting professional and author, Brigitte A. Thompson as she continues her helpful advice to writers.

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Writers may choose to meet with their agents over lunch or they might arrange to meet a subject to interview at a local bagel shop. The cost of the meal can be a tax deduction with proper purpose and documentation.

1. The primary purpose of your business meal must be related to your writing business.

2. You must conduct business during the meeting such as discussing the storyline of a new book or determining which publications are interested in your current article.

3. Be sure to save the receipt. It should contain pertinent information such as the name of business, location, date of the meeting, time, who was present, total charge, and how it was paid for. You can use the back of this receipt to record a summary of what was discussed.

The amount you can deduct is limited to 50% of the actual unreimbursed costs. The IRS is considering an increase in this amount to allow 80% reimbursement. As of this writing, the deduction has not been raised. You can Visit the IRS Web site for updates.

accounting, bookkeeping, author© Brigitte A. Thompson, Datamaster Accounting Services, LLC
Author of Bookkeeping Basics for Freelance Writers available on Amazon:

The information provided is intended to be general and based on the Federal Tax laws of the United States. As such, it is subject to change. This information is not intended to be used as a substitute for financial or legal advice. Be sure to consult your tax advisor on all tax matters.

2 thoughts on “Tax Tips for Writers: Business Meals”

  1. Great post! Although I live in Canada, the rules are quite similar. This is one of the many perks that come with owning and operating a business. The tax deductions are quite substantial and new entrepreneurs are astonished at how many deductions they can make to their taxes. At Blackthorn Bookkeeping, regular seminars are held where we point out ALL the tax deductions and benefits that entrepreneurs see. One of them is exactly what you have in your post here, regarding business meals. I look forward to reading more from you in the future.

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