Article
Guidance for 2026 deductions on meals, travel and other entertainment expenses
Dec. 11, 2025 · Authored by Brooke Weitzer, Aneta Stefanik
Understanding the latest guidance on deductibility for meals, travel and other entertainment expenses is essential for businesses to remain compliant while maximizing tax benefits. The rules have evolved for tax years beginning in 2026, bringing new opportunities and clarifications impacting various expenses from business meals and employee events to industry-specific exemptions for certain sectors such as fishing. This article breaks down what’s deductible, what’s not and key changes in the year ahead.
Club dues and membership fees
Generally, you cannot deduct amounts paid or incurred for membership in any club organized for business, pleasure, recreation or any other social purpose. This includes country clubs, golf and athletic clubs, hotel clubs, sporting clubs, airline clubs and clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. It should be noted that the following organizations are not treated as clubs organized for business, pleasure, recreation or other social purpose unless one of the main purposes is to conduct entertainment activities for members or their guests or to provide members or their guests with access to entertainment facilities.
- Boards of trade
- Business leagues
- Chambers of commerce
- Civic or public service organizations
- Professional organizations such as bar associations and medical associations
- Real estate boards
- Trade associations.
Business meals and travel
100% deductible
Your meal expense is not subject to the 50% deduction limit if the expense meets one of the following exceptions.
- Recreational meals: Meals provided to all employees for recreational/social purposes.
- Advertising expenses: You are not subject to the 50% limit if you provide meals or recreational facilities to the general public as a means of advertising or promoting goodwill in the community. For example, neither the expense of sponsoring a television or radio show nor the expense of distributing free food and beverages to the general public is subject to the 50% limit.
Related sections
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.