Question

4) Which of the following is required for a taxpayer to deduct the cost of a business meal?

FOR THE TAX YEAR 2019

A) All of the choices are conditions for a deduction.

B) A customer must be present at the meal.

C) The meal must occur on the taxpayer's business premises.

D) None of these choices is a condition for the deduction.

E) The taxpayer or an employee must be present at the meal.

Answer 1

The cost of the business meals refers to a the amount a business spends in buying meals for customer or a client or an employee. In order to be eligible to deduct the cost of a business meal, the correct answer is Option E - The taxpayer or an employee must be present at the meal. In order for the taxpayer to deduct the cost of a business meal, it is required that the taxpayer or an employee should be present at the time of buying the business meal.

Option A is incorrect as all the choices are not required to be met for deducting the cost of a business meal.

Option B is incorrect as a customer is always not required to be present at the meal.

Option C is incorrect as it is not required for the meal to occur at taxpayer's business premises. The cost of the meal is free to occur outside the business premises as well.

Option D is incorrect as we have the answer at Option E.