Tips for Recording Your Meals in Your Accounting Program
When it comes to preparing your tax return, it’s easy to forget which meals met the exception to be 100% deductible.
If your tax preparer has never asked you about the 100% meal deduction exception, then it most likely means all of your meals are being subject to the 50% limitation.
It’s best to capture this information when you actually have the meal. You can do this by setting up two meal expense accounts on your books.
Expense Account #1: Meals – 50% deductible
Expense Account #2: Meals – 100% deductible
Simply code the meal to the proper account when you enter it in your accounting program (such as QuickBooks). Then it’s all ready for your tax preparer with no additional work.