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2 Copyright Â© 2014 Deloitte Development LLC. All rights reserved Agenda Tax Deductibility of Travel, Meals and Entertainment ExpensesDocumentation RequirementsPotential for Income Inclusion with Regard to EmployeesCurrent IRS Examination Trends Q&A.
Deducting Actual Meal Expenses. If you use the actual expense method, you must keep track of what you spend on meals (including tips and tax) en route to and at your business destination. When you do your taxes, you add these amounts together and deduct half of the total.Example: Frank goes on a business trip from Santa Fe, New Mexico to Reno, Nevada. He gets there by car. On the way, he spends $200 for meals. While in Reno, he spends another $200. His total meal expense for the trip is $400.educting Actual Meal Expenses. If you use the actual expense method, you must keep track of what you spend on meals (including tips and tax) en route to and at your business destination. When you do your taxes, you add these amounts together and deduct half of the total.