Meal and Entertainment Expenses for Local Delivery Contractors

Meals and Entertainment are “typically” only deductible under the following circumstances:
They are deductible if you are working more than 75 miles from your home office. This does not mean that if you drive your truck more than 75 miles in a day that your meals are deductible, it means that if you have a delivery that is more than 75 miles away or you’ve been sent to another city to work for a period of time, then your meals are deductible.

Meals and Entertainment is an area that the IRS isn’t quite so generous. You are only allowed to deduct 50% of the qualified meals and entertainment on your tax return.


For meals and entertainment, you must substantiate the following:
· The amount of the expenditure

· The date of the expenditure

· The name, address or location, and type of expenditure, such as dinner or theater, if the information is not apparent in the name or designation of the place

· The reason for the expenditure or the business benefit derived or expected to be gained

· The occupation or other information about the person or persons entertained, including the names, titles or other designation sufficient to establish the business relationship.

However, there are some exceptions in which you can deduct all of the meal and entertainment expense. They are:
· Expenses treated by an employer as compensation to an employee

· Expenses incurred for recreational or social activities provided by the employer for the benefit of its employees. These might be the annual company picnic or holiday party.

By By following these simple guidelines you will maximize your deductions and save money for your business in the long run.

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