Tax law often discriminates against company owners, granting them no or fewer fringe benefits.

But you, the owner, are not discriminated against when it comes to supper money.

It works like this:

The supper money fringe benefit is for defined employees.

The IRS supper money rule states that the term “employee” for this purpose means anyone who receives supper money.1

That means you can take this benefit for yourself, even as a sole proprietor. You also qualify for this benefit if you operate your business as a corporation or a partnership.

Caution. Even though you, as the boss, technically meet the “employee” definition, we recommend that you use this rule for your personal meals only in situations where you also provide the meal allowance to other employees who stay late and work with you.

Since you are the boss and have more control over your hours than employees do, it’s easier to prove the necessity of overtime work when your employees are also present.

The Deduction

The supper money fringe benefit provides you ... Log in to view full article.