50% Rule for Meals & Entertainment – Landlord Tax Deduction | Business Expense

When traveling away from home on business, you may incur expenses for meals and entertainment. You can deduct 50% of meal and entertainment costs incurred when traveling locally, overnight, or long distance for your rental activity.

So if you get hungry driving across town while going to pickup the rent check, consider taking your tenant out to lunch. Deducting half of your combined expense may be more beneficial than not being able to write-off your own meal.

Keep in mind that meal and entertainment costs are deductible only if they are considered ordinary and necessary for managing your investments.

Follow the link to read it in IRS Publication 463.

This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. 50% Rule for Meals & Entertainment – Landlord Tax Deduction | Business Expense is brought to you by SimplifyEm Pay Rent Online and Property Management Software

Welcome back! What did you think of our Property Management Software? Are you subscribed to our feed and receiving email updates?

You might also want to read:

1. Tips for Landlords, Rental Property Owners Regarding Business Travel Tax Deductibles The summer travel season is almost upon us. Keep in mind that if your summertime travel is primarily for rental property business such as inspection of your property, then a portion of the trip may......
2. Traveling Away from Home You can deduct the expense of traveling away from home if the primary purpose of the trip was to collect rental income or to manage, conserve, or maintain rental property. You can also deduct expenses......
3. Gifts Vs. Entertainment Expenses Deduct up to 50% of entertainment costs, or gift costs up to $25 each, as long as they are ordinary and necessary for your rental investment. Any item that might be considered either a gift......
4. Actual Expense Method – Auto Expenses You Can Actually Deduct | Vehicle Deduction Tax Tips Vehicle expenses paid exclusively for rental activity can be fully deductible. Using the actual expense method instead of standard mileage might be more beneficial if your vehicle incurred a lot of expenses during the year.......
5. Home Office Expense Tax Deduction | Landlord Guide for Business Expenses Expenses for your home office or workshop used to manage your rental property are considered deductible expenses only if you used a portion of your home exclusively and on a regular basis as your principal......