In order to deduct a portion of the cost of a business meal which of the following conditions must be met?
A) A client (not a supplier or vendor) must be present at the meal.
B) The taxpayer or an employee must be present at the meal.
C) The meal must occur on the taxpayer's business premises.
D) None of the choices is a condition for the deduction.
E) All of the choices are conditions for a deduction.

Question

Quizplus · Accepted Answer

The taxpayer or an employee must be present at the meal in order for it to be deductible. While having a client present may help to establish the business purpose of the meal, it is not a requirement for the deduction. The meal can also take place off the taxpayer's business premises and still be deductible, as long as it meets the other criteria. Therefore, the correct answer is B.

In Order to Deduct a Portion of the Cost of a Business