Frequently Asked Tax Questions And Answers
Keyword: Standard Meal Allowance
12.7 Small Business/Self-Employed/Other Business : Income & Expenses
For business travel, are there limits on the amounts deductible
for meals?
Meal expenses are deductible only if your trip is overnight or long enough
that you need to stop for sleep or rest to properly perform your duties. The
amount of the meal expenses must be substantiated, but instead of keeping
records of the actual cost of your meal expenses you can generally use a standard
meal allowance ranging from $30 to $50 in 2003 depending on where and when
you travel.
Generally, the deduction for unreimbursed business meals is limited to
50% of the cost that would otherwise be deductible.
For more information on business travel expenses and restrictions, refer
to Tax Topic 511 , or Publication 463, Travel, Entertainment,
Gift, and Car Expenses, and Publication 1542, Per Diem Rates .
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