Business meal deductibility

Entertainment expenses are no longer deductible however meals are still 50% deductible (100% deductible when purchased from a restaurant) and are deductible when they are related to entertainment under certain circumstances. Meals are deductible under the following conditions:
1. The expense is an ordinary and necessary business expense;
2. The expense is not lavish or extravagant under the circumstances;
3. The taxpayer, or an employee of the taxpayer, is present when the food or beverages are furnished;
4. The food and beverages are provided to a current or potential business customer, client, consultant, or similar business contact; and
5. For food and beverages provided during or at an entertainment activity, they are purchased separately from the entertainment, or the cost of the food and beverages is stated separately from the cost of the entertainment on one or more bills, invoices, or receipts.