Are donuts 100% deductible?
Are donuts 100% deductible? 100 Percent Deductions – These expenses usually benefit the employees of a company. For example: Free coffee, bottled water, donuts, etc. provided to employees at the place of business.
What does the IRS consider lavish or extravagant meals?
In a nutshell, the ordinary and necessary test should give you no trouble in meeting this standard for your client, prospect, consultant, and similar business contact business meal tax deductions. The law does not define “lavish” or “extravagant,” and no court cases have applied the concept to deny business meal costs.