Food deduction

[MGC94]

How much food can a fisherman deduct on a schedule C when they are out 12 hours a day? 

[TaxGuyBill]

Unless they are away from their "Tax Home" overnight, there would not be a deduction for meals. 

[qbteachmt]

What I would do is nail down the bazillion details that matter, since this is worded too vaguely to be addressed here.

Commercial or Sport or Transportation industry (DOT rules); which product; how sold; how is the boat owned and operated; is this person crewing as an employee or not; is the person paid by the boat captain or the buyer of the catch or do they sell their share of the catch on their own; what is deducted from their share, if they get a catch share from the captain; are they located on the boat overnight; are they located away from home but not on the boat overnight...A million details matter.

https://www.journalofaccountancy.com/news/2020/sep/irs-2020-2021-per-diem-rates.html

And Alaska has per diem rates based on specific location.

Start here:

https://www.irs.gov/taxtopics/tc416

https://www.irs.gov/businesses/small-businesses-self-employed/fishing-tax-center

And other web resources, such as the regional fisheries agency, and the web:

https://www.cpapracticeadvisor.com/tax-compliance/article/12425944/top-tax-tips-for-those-in-the-com...

[Just-Lisa-Now-]

Im at work away from my home for 12 hours a day too, how much can I deduct for meals?

[TaxGuyBill]

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@Just-Lisa-Now- wrote:
Im at work away from my home for 12 hours a day too, how much can I deduct for meals?

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Alcohol is deductible, isn't it?  It certainly seems like that would be "ordinary and necessary" for a tax preparer.   😁

🍷🍸🍹🍺 .

[Just-Lisa-Now-]

supersized!

[dascpa]

Why would a fisherman need to spend money on meals. Doesn't he/she just eat the fish that was caught?  Had a client who was a lobsterman in Maine. Odd thing, he was allergic to shellfish.

[MGC94]

So what is the point of line 24 of the schedule C? To deduct meals? What qualifies for that? Taking a client out to dinner? Working 18 hours a day? being 50+ miles away from home? Thanks guys 

[dkh]

@TaxGuyBill  I'll take one of each please.

[sjrcpa]

Business meals - such as meals with clients.

Notice the description says Deductible meals (see instructions)

[qbteachmt]

"Working 18 hours a day? being 50+ miles away from home?"

First, it's important to always read the IRS info, because the regulations Changed, and they keep changing, and this year, there are different (temporary) rules, yet again.

Next, I start under this assumption: Everyone has to eat. Just because they don't want to pack a lunch does not make a Meal a Business deduction.

Did you notice Bill's comments regarding "overnight" and "away from their Tax Home?"

Did you read any of the resources offered?

The point is to enter what applies. Until you read the regulations in force that specific tax year, for that specific person's facts and circumstances, you don't know if the Point applies, or not.

We recently had a question on the forum for someone whose "business meals" total $30k, and they stated $10k was for subcontractors and $20k was for the Sole Proprietor. Yeah, sure, that's nearly $400 a week on Business Food for the owner? I doubt it would withstand scrutiny.