What are the limits on deductible travel, entertainment and meals costs?
A. There are no dollar limits. Expenses must be “ordinary and necessary” (meaning appropriate and helpful) and not “lavish or extravagant”, but this doesn t bar deluxe accommodations, travel or meals. Deduction for business entertainment and business meals can t exceed 50% of the cost. There are additional special limitations on skyboxes and luxury water travel.
