united-states business tax-law
Can I expense a trip to a coffee shop (small business owner)
<p>I own a small business and work out of my home. Sometimes I like to work out of a coffee shop for a few hours here and there.</p>

<p>Can I expense the coffee that I buy at a coffee shop?</p>

<p>For U.S. companies and proprietors: <strong>No</strong>.  In general you can only deduct food costs for necessary business travel, and then it is subject to either published "per diem" rates or a "50% limit".</p>

<p>Start your adventure <a href="http://www.irs.gov/publications/p463/ch02.html#en_US_2014_publink100033862" rel="nofollow">reading at the IRS, Publication 463, here</a>!</p>

<p>Amusingly, if you have a separate office, <a href="http://blogs.findlaw.com/free_enterprise/2012/01/how-to-deduct-coffee-donuts-as-biz-expenses.html" rel="nofollow">you <em>can</em> fully deduct the cost of "refreshments" (which includes coffee) in that office</a> as a "business supply."</p>

<p>In Australia, you can claim the GST and a tax deduction for coffee you buy for clients, suppliers, etc. but not for owners or employees. They must either pay for it themselves or, if the company does, it is not tax deductible. Alternatively, it can be treated as a fringe benefit; fringe benefits over $100 per year per employee must have fringe benefits tax paid and are then deductible for GST and income tax.</p>

<p>In addition, if the employee (owner) is staying away from home overnight; they may claim meal (and accommodation, transport etc.) either at cost (subject to limits that increase with your base salary) or on a <em>per diem</em> rate set by the ATO based on the location.</p>
