3D rendering of a melanocyte. Through a process called melanogenesis, these cells produce melanin, which is a pigment found in the skin, eyes, and hair. This melanogenesis leads to a long-lasting pigmentation, which is in contrast to the pigmentation that originates from oxidation of already-existing melanin.
Example 1. You spend $200 for a business-related meal. If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. Your deduction cannot be more than $45 (50% Ã $90).
To be deductible, your meal costs must be business-related. If you take a client out to lunch, the cost of the meal must be an ordinary and necessary business expense (not lavish or extravagant) and must be either: 1  Directly related to the active conduct of your business (directly-related test). or.