Is Your Steak Dinner a Tax Trap? 🥩📉

“I’ll just write it off.” It’s the most famous phrase in business, but it’s often misunderstood. When it comes to Categorization, the label you choose can be the difference between a tax save and a tax disaster.

Let’s talk about the “Meal Trap”:

🍽️ The 50% Limit: Most business meals (with clients or partners) are only 50% deductible. You spend $100, but the IRS only cares about $50.

✈️ Travel vs. Local: If you’re grabbing coffee down the street, it’s a Meal. If you’re eating in a different city while on a business trip, it’s Travel (but the food is still 50%!).

🎟️ Entertainment is Dead: Taking a client to a show or a game? Since the tax law changes a few years back, those are generally 0% deductible.

Why does this matter in 2026? 🧐

If you categorize everything as 100% deductible, you’re going to have a very painful conversation with your CPA (or the IRS) at the end of the year. Accurate bookkeeping means knowing the rules before you swipe the card.

Are you unsure if that last purchase was a “Meal” or “Travel”? Stop guessing and start knowing. I help small business owners build a categorization system that is audit-proof and easy to manage.

👇 Click the link below for a Free Consultation. Let’s get your deductions right the first time.

#TaxStrategy #SmallBusinessBookkeeping #BusinessMeals #IRS #EntrepreneurTips #Categorization101