Business Meals, Travel, and Taxes 2026

What Business Owners Really Need to Know in Plain English
Let me be honest with you upfront. This topic can get confusing fast.

That is exactly why I am writing this for business owners, not at them.

Tax rules change. Bills get passed. Language gets technical. And most entrepreneurs really just want one clear answer:

What can I deduct, and how does it actually affect my business?

Let’s break it down simply.

 The Simple Rule Before We Go Deeper
As of now, here is the general framework most business owners need to understand:

• Transportation and lodging are typically deductible at 100%
• Business meals are typically deductible at 50%

That alone clears up a lot of confusion.

But here is where people usually get tripped up.

 Why Meals Are Recorded at 100% but Only Deducted at 50%
This part sounds complex, but it is easier than most people think.

When you pay for a business meal:

• Your bookkeeping records 100% of the cost
• Your tax return later allows only 50% of that cost to reduce taxable income

The other 50% does not disappear. It affects a different part of your business, your equity.

If that sounds confusing, that is normal. Let me show you what this looks like in real life.

 
Example 1: Transportation (Uber Ride)
Let’s say:

• Your business has $100 in taxable income
• Your business equity is $1,000
• You take a $50 Uber ride for business

After everything is recorded and the tax return is prepared:

• Taxable income drops from $100 to $50
• Business equity increases from $1,000 to $1,050

Why?

Because transportation is 100% deductible.

Straightforward.

Example 2: Business Meal (Uber Eats)
Same business. Same numbers:

• $100 in taxable income
• $1,000 in equity
• A $50 Uber Eats order for business

After bookkeeping and tax preparation:

• Taxable income only drops to $75
• Business equity still increases to $1,050

Why?

Because only 50% of the meal reduces taxable income.

The other 50% still impacts the business, just not your taxes in the same way.

 
When It Gets More Complex and Why I Start Simple
Now let’s say your business is more sophisticated.

Imagine this scenario:

• A quarterly client appreciation dinner for 20 people costing $2,000
• Team travel to a conference with $5,000 in flights and hotels
• Daily team meals during the trip totaling $1,500

Now you are dealing with questions like:

• Which meals qualify as business meals versus entertainment
• Whether per diem rules apply
• How lodging rules differ by location
• How to allocate costs between employees and clients
• Whether any exceptions allow higher deductibility

This is exactly why I always explain the simple case first.

If your business has layered scenarios like this, a blog post is not enough. You need guidance tailored to your structure.

 
Why I Am Explaining This to You
Most business owners do not need to master tax law.

But you do need to understand how decisions affect:

• Cash flow
• Taxes
• Long term business health

Here is the key takeaway many people miss:

Just because you deducted something last year does not mean you can deduct it the same way this year.

Tax laws change. Guidance evolves. Assumptions get expensive.

That is why relying on old habits or social media advice can quietly cost you money.

 What Is Changing and Why You Should Pay Attention
There are ongoing changes around meal deductions and employer provided meals under newer legislation. Some deductions business owners relied on in the past may be reduced or eliminated in future years.

This is not about panic.

It is about staying informed and structured.

Final Takeaway for Business Owners
• Transportation and lodging are generally fully deductible
• Business meals are usually only half deductible
• Everything is recorded, but not everything reduces taxes the same way
• Rules change, so strategy matters more than habit

If any part of this felt complicated, that is normal.

That is exactly why I write this for you, so you can focus on running your business while making smarter financial decisions.

 
Want to Go Deeper?
If your business involves multiple entities, international travel, client entertainment, team retreats, or layered expense structures, let’s talk through your specific situation.

When in doubt, ask. Do not assume.

Structure beats guessing every time.

If you are ready for a tailored strategy conversation, book time with me, Kellen, and let’s build a plan that actually fits how your business operates.