How to Keep Proper Records for BusinessMeals

A restaurant receipt shows where and how much you spent. It may not show why the meal was connected to your business.

For each business-related meal, save the receipt and add a short note that includes:

• Date

• Location

• People who attended

• Business reason for the meal

• Total amount

For example, “Lunch with customer to discuss upcoming project” is more useful than simply writing “business meeting.”

Do not assume every meal purchased during the workday is automatically a business expense. The mealshould have a clear connection to the business.

When a receipt includes both business and personal items, identify the business portion.

It is also helpful to record tips and other charges if they do not appear clearly on the receipt.

Tax treatment for meals can vary depending on the situation, so complete records are important. Aqualified tax professional can determine how a particular meal should be handled.

Clear notes made immediately are more reliable than trying to remember the conversation and participantsmonths later.