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Can I write off groceries for an online business

TL;DR

Groceries for an online business are generally not deductible unless they are directly related to business activities, such as providing meals for clients or employees during a business meeting.

Detailed Answer

Groceries are typically considered personal expenses and are not deductible for business purposes. However, if groceries are used to prepare meals for clients or employees during a business-related event, they may be deductible under the meals expense category. For example, if you host a business meeting at your home and provide meals, the cost of groceries used to prepare those meals can be deducted at 50% of the total cost. It is crucial that these expenses are ordinary and necessary for your business operations. Personal consumption of groceries is never deductible.

Where to Put It on the Tax Form

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

Real World Example

A freelance graphic designer hosts a portfolio review session at their home for potential clients and provides lunch. The cost of groceries used to prepare the lunch can be deducted at 50% as a business meal expense.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed records including receipts for groceries, a log of the business purpose, and a list of attendees. Clearly document the business nature of the meeting and the necessity of providing meals.

IRS Reference

IRS Publication 463 (Travel, Entertainment, Gift, and Car Expenses) and IRC §162 (Trade or Business Expenses).

Relevant Industries

FreelancersConsultantsSmall Business OwnersEvent Planners

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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 January 3, 2026

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