Business meals with family?

Question

Hi. I'm a business owner. When I go on business trips sometimes I take my husband and my daughter with me. My husband and daughter are NOT employees in my business. So I know I can deduct my meals while on business, but not theirs.

Since I'm paying for our meals, can I include everyone on the same ticket, and deduct my meal at taxtime? Or should I have a separate ticket for myself and one for them?

I don't want to give the appearance to my family that I'm separating myself from them, but I also don't want any problems with the IRS. Any ideas?

Answer 1

it is best to have two tickets.  explain to your family why you are doing this.  if you have one ticket and get audited, and you have a more expensive meal then others in your family, the irs may only allow the cheaper meal.   hope this helps. good luck

Answer 2

The IRS only requires receipts over $75. You can get one receipt, and note your expense, and use that amount. You can keep the receipt for backup, should you ever be audited, but it isnt required.

Answer 3

You can have one receipt and just note on it how much was your meal.  It might be cleaner if you are ever audited to just get separate receipts - but then you run into the same issue for things like hotel bills.

Answer 4

As long as you have a good paper trail, you can do it either way. A notebook with your meal expenses will do.

If the expenses seem unreasonable, the IRS may ask for documentation. If they seem reasonable, they probably never will. The IRS accepts contemporaneous written records as documentation. With the restaurant receipt and written record outlying business and non-business portion, that will be fine.

Of course, separate receipts, if your family doesn't object (and why should they? they get the trip) would be easier, less writing, less notebooks. But it is your choice.