Running your own business means keeping costs down. But can you deduct the cost of that client lunch from your taxes? Let's break it down:
What's Allowed: Advertising Your Business
Website, flyers, social media ads: These are all ways to promote your services and find new clients. The cost is tax-deductible!
Free samples or consultations: Offering a free trial or first meeting lets potential clients experience your work. It's like a mini-ad, and you can deduct the cost (within reason).
What's Not Allowed: Just Entertaining Clients
Fancy dinners or sporting event tickets: These are seen as "hospitality" and aren't tax-deductible, even if you talk business.
The Grey Area: Meals with a Purpose
Quick coffee or snacks at a business meeting: This is usually okay, especially if the meeting is focused on work.
Trade shows with refreshments: Small bites and drinks at your booth are considered advertising, so the cost is deductible.
Remember:
Always consult a tax advisor for specific advice.
Keep receipts for any business expenses you claim.
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