Question

Can self employed meals from any restaurant be deducted 100% this year? My review is stating Im high risk for audit if I place the cost in that 100% category

Forum|Forum|3 years ago
May 11, 2022
1 reply
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If this is in fact allowed for 2021, why is the tax return review warning me I am at risk for audit?

TurboTax Self Employed Online

LudwigVan_fan

See this notice

https://www.irs.gov/pub/irs-drop/n-21-25.pdf

https://www.irs.gov/pub/irs-drop/n-21-63.pdf

https://www.irs.gov/pub/irs-drop/rp-19-48.pdf

Not all meals are allowed to be deducted. Either per diem rules must be met and/or the rules for business meeting/entertainment rules must be met, so the rules for Section 162 and 274 allowing the meals in the first place must be met.

TT probably rates this as high risk, because this is a highly audited item by IRS. Over the years a lot of adjustments have been made in audits in this area as many people tend to over deduct in this area.

**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**