I often take clients out for business lunches. Can these meal expenses be used on my tax return?

Answer: 50% of your meal expenses can be used on your tax return. However, in order to be deductible, a substantial portion of the entertainment must be business related and it must be established that there was a clear business purpose in making the expenditure.

Example: An owner of a public relations firm takes different individuals out for dinner and lunch most days of the week. At the end of the year the meals have a cost of $30,000. Only $15,000 of this is allowed as a valid business expense.