Tax Strategy

The Truth About Meal & Travel Deductions After the Rule Changes

Small Business Tax Savings Podcast
Small Business Tax Savings Podcast•May 11, 2026

Why It Matters

Accurate application of the updated deduction rules turns everyday business spending into significant tax savings and reduces audit exposure for small and mid‑size enterprises.

Key Takeaways

  • •Meals generally 50% deductible; business purpose required for deduction.
  • •Certain events allow 100% meal deductions when provided for business.
  • •Entertainment expenses non‑deductible except employee‑focused gatherings that are qualified.
  • •Travel costs fully deductible; meals only 50% with business day.
  • •Tax home rule determines legitimate travel deductions for business trips.

Summary

The video breaks down the 2026 tax‑code changes affecting meals, travel and entertainment deductions after the Tax Cuts and Jobs Act and recent legislation. It explains that ordinary business meals are only 50% deductible and must have a clear business purpose, while meals served at qualifying events such as sales seminars can be written off 100%. Key points include the strict non‑deductibility of pure entertainment, the exception for employee‑focused gatherings, and the full deductibility of travel expenses—flights, hotels and transportation—paired with a 50% limit on meals when the trip meets the IRS’s business‑day and tax‑home criteria. The presenter stresses the “sniff test” auditors use and illustrates the concept by converting a personal Washington D.C. vacation into a deductible trip by attaching conference attendance. He also promotes a free Tax Savings Starter Kit that provides real‑world examples of owners saving $5,000‑$25,000 through proper expense classification. The guidance aims to help business owners shift spending from after‑tax to pre‑tax, avoiding audit risk while maximizing savings. By correctly classifying meals, travel and limited entertainment, owners can turn routine expenditures into substantial tax reductions, preserving cash flow and enhancing profitability.

Original Description

If you’re a business owner spending money on meals, travel, or events — but not sure what’s actually deductible anymore — this episode is for you.
Most people fall into one of two traps…
They either write off too little and overpay… or they write off the wrong things and create problems later.
And with rule changes over the past few years — especially after TCJA — things aren’t as simple as they used to be.
In this episode, we break down exactly what still works in 2026 when it comes to meals, travel, and entertainment… what changed… and how to use these rules the right way.
In this episode, we cover:
– Why meals & travel are some of the most overlooked deductions
– The difference between after-tax vs pre-tax spending
– What “ordinary and necessary” really means
– Meal deductions in 2026 (50% vs 100%)
– The 4 types of meal deductions most people miss
– Why entertainment is no longer deductible
– Travel write-offs (flights, hotels, transportation)
– The “tax home” rule (where most people mess up)
– How to structure trips to maximize deductions
– The standby day rule explained
– What documentation you MUST track to stay compliant
The bottom line:
Meals, travel, and events can be powerful tax tools — but only if you understand the rules and use them strategically.
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