72930930_rce___Professional_Development__0
[1] On his Schedule C, Rehman claimed a $2,387 deduction for meals and entertainment and a $7,490 deduction for travel. He produced a log that labeled all "lunch" entries as $10. For all entries labeled "Travel" the amount was $14. He testified that each $10 entry was a restaurant bill and each $14 entry was taxi fare from his apartment to the restaurant and back. [2] As stated above, it is possible to deduct 50 percent of the cost of lunches as meals and entertainment expenses if a taxpayer is eating with a customer or client and the meeting is directly related to the conduct of a taxpayer's trade or business. A "contemporaneous" log should be kept to record expenses on or near the dates of client and business-related lunches. [3] There was no evidence Rehman's lunches were related to his business, the court stated. Also, a deduction is not allowed for meals and entertainment unless a taxpayer properly substantiates: the expense; time and place; business purpose, and business relationship between the taxpayer and the person(s) entertained. The court did not believe the log was kept as the expenses were incurred. "It appears that Rehman prepared the log in one fell swoop long after the dates in question," the ruling stated. [0] 
Meal and entertainment expenses while self employed
Greater Providence Chamber of Commerce | Professional Development
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