Is a coffee meeting line 24b or not deductible?

A coffee you drank alone while working is personal, even in a cafe you treat as your office, because a business meal needs a business discussion with someone present.

Is a coffee meeting line 24b or line 18?

Coffee bought for a meeting is line 24b at 50 percent; coffee and supplies stocked in your own office for staff and visitors is office expense on line 18.

Where does a coffee meeting go on Schedule C? Line 24b

Q: Where does a coffee meeting go on Schedule C?

A coffee meeting belongs on Line 24b, deductible meals. Coffee bought for a meeting with a client, a prospect or a referral partner is a business meal on line 24b at 50 percent, the same as a restaurant bill. Small amounts get treated carelessly in both directions. People skip them, which quietly loses a real deduction over a year, or they claim every coffee shop charge on the card, including the ones where they sat alone with a laptop. The deciding fact is whether someone with a business relationship to you was across the table.

Short answer Schedule C, Line 24b Deductible meals

A coffee meeting belongs on Line 24b, deductible meals.

Why line 24b

Coffee bought for a meeting with a client, a prospect or a referral partner is a business meal on line 24b at 50 percent, the same as a restaurant bill. Small amounts get treated carelessly in both directions. People skip them, which quietly loses a real deduction over a year, or they claim every coffee shop charge on the card, including the ones where they sat alone with a laptop. The deciding fact is whether someone with a business relationship to you was across the table.

Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a coffee meeting lands on Line 24b without you sorting it.

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What a coffee meeting is confused with

not deductible, not deductible: A coffee you drank alone while working is personal, even in a cafe you treat as your office, because a business meal needs a business discussion with someone present.
Line 18, office expense: Coffee bought for a meeting is line 24b at 50 percent; coffee and supplies stocked in your own office for staff and visitors is office expense on line 18.
Line 20b, rent or lease of other business property: If what you are really buying is a place to work, a day pass at a cafe-workspace or a coworking desk, that is rent on line 20b rather than a meal.

Examples that belong on line 24b

$14 for two coffees with a prospect, deducted at $7
$9 coffee and pastry with a referral partner, deducted at $4.50
$26 of coffee for a four-person client catch-up, deducted at $13
$7 coffee bought for a subcontractor while reviewing a job
$18 of coffee and tea on a client site visit, deducted at $9

What does not belong here

Your own coffee while working alone in a cafe.
A weekly cafe habit claimed in full from the card statement.
Coffee beans for the household kitchen.
The full amount rather than 50 percent.

The limit that applies

Limited to 50 percent of the cost.

What to keep

Note the other person's name and the business reason on the receipt or in the expense note the same day. For small amounts this note is the entire substantiation, because the receipt says nothing but a time and a total.

Other expenses on line 24b

Expense	Line
a meal at a conference	Schedule C, Line 24b
a staff holiday party	Schedule C, Line 24b
a team meal for employees	Schedule C, Line 24b
lunch with a client	Schedule C, Line 24b
your own meals while traveling overnight	Schedule C, Line 24b

Related lookups

Sources

This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.

Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.

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