Checkmark iconCan I Write This Off?

Can I write off coffee for client meetings?

TL;DR

Coffee for client meetings can be deductible as a business expense under certain conditions.

Detailed Answer

The cost of coffee purchased for client meetings can be deducted as a business expense if it is directly related to or associated with the active conduct of your trade or business. The expense must be ordinary and necessary, meaning it is common and accepted in your field of business and helpful and appropriate for your business. For example, if you meet a client at a coffee shop to discuss business, the cost of the coffee can be deductible. However, if you purchase coffee for personal consumption or outside of a business context, it is not deductible.

Where to Put It on the Tax Form

Schedule C, Line 24b for business meals and entertainment expenses

Real World Example

A freelance graphic designer meets a potential client at a coffee shop to discuss a new project. The designer buys coffee for both themselves and the client. The cost of the coffee is deductible as a business expense.

Calculation Required

A calculation is required for this deduction.

You can deduct 50% of the cost of the coffee as a business expense. For example, if the total cost is $10, you can deduct $5.

Audit Risk & Documentation Tips

To minimize audit risk, keep detailed records of the meeting, including the date, location, purpose, and who was present. Retain receipts showing the cost of the coffee. Document how the meeting was directly related to your business.

IRS Reference

IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses

Relevant Industries

FreelancersSmall BusinessConsultantsSales Professionals

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 7, 2025

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