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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.
Meal expenses when subject to âhours of serviceâ limits. You can deduct 80% of the cost of reimbursed meals your employees consume while away from their tax home on business during, or incident to, any period subject to the Department of Transportation's â hours of service â limits.f you reimburse these expenses under an accountable plan, deduct them as travel, meals, or entertainment expenses. If you reimburse these expenses under a nonaccountable plan, report the reimbursements as wages on Form W-2, Wage and Tax Statement, and deduct them as wages on the appropriate line of your tax return.