Listen to a Business English Dialogue About Meals and entertainment expense
Bobby: Lily, have you ever considered tracking meals and entertainment expenses for tax purposes?
Lily: No, I haven’t. How does that work?
Bobby: Well, for businesses, meals and entertainment expenses can be deducted as long as they are directly related to the business and are reasonable in amount.
Lily: That makes sense. So, if I take a client out to lunch to discuss business, that could be considered a deductible expense?
Bobby: Exactly. As long as the primary purpose of the meal or entertainment is business-related, you can usually deduct 50% of the expenses incurred.
Lily: What about meals and entertainment for employees? Can those be deducted as well?
Bobby: Yes, meals and entertainment expenses for employees, such as holiday parties or team lunches, can also be deductible, subject to certain limitations and conditions.
Lily: Good to know. I’ll make sure to keep track of those expenses for tax time.
Bobby: It’s definitely worth keeping records of all business-related meals and entertainment expenses to ensure you’re taking advantage of all available deductions.
Lily: Thanks for the advice, Bobby. I’ll start keeping better track of those expenses from now on.
Bobby: No problem, Lily. Happy to help. Keeping thorough records will make tax time a lot easier for you.