Think you can still write off that client golf outing or business lunch? Think again.
Tax laws governing meals and entertainment have changed significantly over the past few years. While the temporary 100% deduction for most restaurant meals is long gone, there are still opportunities to maximize deductions—if you know the rules.
The One Big Beautiful Bill Act (OBBBA) made a few targeted changes, while provisions from the Tax Cuts and Jobs Act (TCJA) continue to limit many popular business expenses.
The result? Not every meal—or every outing—is treated the same.
Here’s the good news.
Many legitimate business meal expenses are still deductible. Employee appreciation events remain fully deductible, and ordinary business meals with clients or prospects generally qualify for a 50% deduction.
On the other hand, most entertainment expenses—even when they’re intended to generate business—remain completely non-deductible. That means golf outings, sporting events, concerts, and similar entertainment with clients generally won’t reduce your tax bill.
One notable exception created under OBBBA allows employers operating certain offshore oil and gas drilling rigs or defined fishing vessels to continue deducting qualifying employee meals at 100%.
Before You Swipe the Company Credit Card…
Ask yourself:
- Is this a meal or entertainment?
- Who attended?
- What was the business purpose?
- Is there documentation to support the deduction?
Those answers can determine whether your deduction is worth 100%, 50%, or nothing at all.
The chart below provides a quick reference for the most common meal and entertainment expenses you’ll encounter in 2026 and beyond.
Whether you’re taking a client to lunch, rewarding your employees, or planning your next networking event, knowing the rules before you spend can help you avoid unpleasant surprises at tax time.
When you’re unsure, don’t guess. The tax professionals at Saunders Tax & Accounting can help you maximize every legitimate deduction while keeping you compliant with ever-changing tax laws.
Meals & Entertainment Deductions for 2026 and Beyond
| Deduction | Expense |
|---|---|
| 100% Deductible | Year-end party for employees and spouses |
| 100% Deductible | Golf outing for employees and spouses |
| 50% Deductible | Restaurant meals with clients and prospects |
| 50% Deductible | Employee meals for required business meetings purchased from a restaurant |
| 50% Deductible | Meals served at a chamber of commerce meeting held in a hotel meeting room |
| 50% Deductible | Meals consumed at a restaurant during overnight business travel |
| 50% Deductible | Meals cooked in a hotel room kitchen during overnight business travel |
| 0% Deductible | Entertainment such as baseball and football games with clients and prospects |
| 0% Deductible | Employee meals served by an in-house cafeteria for the employer’s convenience |
| 0% Deductible | Break-room coffee, doughnuts and snacks for employees |
| 0% Deductible | Restaurant meals for employees working overtime |
As with all tax related questions, nothing is cut and dry. For help with your business expenses, contact Saunders Tax & Accounting at http://www.saunderstax.com or call us at 301-714-2071. Open Monday – Thursday, 9 am to 5 pm. Awarded the Hagerstown Hot List 2026 and Hagerstown Chamber of Commerce “2023 Small Business of the Year” by providing a Less Taxing Life and More Prosperous Solutions since 1984!
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source fcfreepresspa.com ’
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