IRS Deductions

ldrosophila

Figure this out, as a contractor, I can deduct my going out to eat expenses at restaraunts, but it's not deductible if I buy groceries. So if I understand this correctly IRS will let me take out deductions to eat crap but not healthly.

Sigh, life's not fair. Guess no one said it every was...

neverstray

Figure this out, as a contractor, I can deduct my going out to eat expenses at restaraunts, but it's not deductible if I buy groceries. So if I understand this correctly IRS will let me take out deductions to eat crap but not healthly.

Sigh, life's not fair. Guess no one said it every was...

I don't think that's correct. I think you can deduct groceries if travelling.

ldrosophila

I hope so because that's what this one tax perparor told me. I'm not eating out all the time it's how I ended up so unhealthy in the first place.

caraiselite

so eat plain protein and veggies. no one said you have to eat crap at a restaurant.

HorseWithNoName27

Hmm, maybe you can get a second opinion from another tax preparer? Or maybe a local tax attorney can answer the question for you over the phone?

If you are stuck to eating out, maybe try getting salads from fast food places, or healthier options in general. Most places have an online menu and you could plan out a decent meal.

Agator82

I wanted to chime in on this real quick. The IRS lets you take food deductions for two reasons, Entertainment or Traveling. If the dining experience is for Entertainment purposes then you would be limited to a 50% deduction on food and drink.

If the food expense is for traveling then you have two options. One you can take it at the actual meal expense, which while I cannot see where it is explicitly states that you need to incur the expenses in restaurants I would say the language implies it. Second you could take a standard meal allowance, which would require you document where and why you traveled. Theoretically if you took the second option it would not matter whether you ate at restaurants, grocery stores, or did not eat at all. The amount that you are able to deduct on the standard meal allowance depends on the part of the country you are traveling in. You need to see Publications 463 for more information.

I assumed by reading your post that you were referring to the second category so that is where I have focused this discussion. In the end talk to your accountant and document, document, document.