Article Date:
June 2013

Word Count:



Protect Your Tax Deductions for Business Entertainment Meals

Have you ever had to face these two conflicted tax laws?



The law that denies your deductions for personal living expenses (food).1


The law that allows meals as tax-deductible entertainment.2

Tax professionals know this conflict as the “Sutter rule” named after Dr. Sutter, who had a bad experience with the Tax Court.3 When the IRS and/or the courts invoke the Sutter rule, you lose your business meal deductions to the extent they don’t exceed your personal meal costs.


Example. Your Dutch treat meal deductions for business entertainment for the year are $12,000. ... Log in to view full article.

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