Can You Expense Alcohol on Your Taxes?
Under IRS Publication 463, entertainment is no longer deductible, and you can generally deduct only 50% of business meal costs, which the IRS defines to include beverages. The parts we read do not mention alcohol by name. Ask a tax professional about your case.
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Standard Drinks Cheat Sheet (PDF): How many US standard drinks and UK units are in beer, wine, spirits and liqueurs, by can, glass and bottle. 33 rows, each with its source.
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We use your email only for this download.What IRS Publication 463 says
- “You can no longer take a deduction for any expense related to activities generally considered entertainment.”
- “In general, you can deduct only 50% of your business-related meal expenses, unless an exception applies.”
- “You can’t deduct expenses for meals that are lavish or extravagant.”
- Meals include amounts spent for food, beverages, taxes and related tips.
Drinks at events
If food and beverages are stated separately from the cost of the entertainment, the separately stated amount may be treated as a meal expense, subject to the 50% limit.
What we could not confirm
In the portions of the page we read (about 200,000 of 361,000 characters), the word alcohol does not appear; the IRS says “food or beverages.” We did not confirm any rule for alcohol sold on its own, gifts of liquor, or state tax rules. Tax rules change each year and the page is the 2025 edition.
What to do
Keep receipts that show the business purpose, who attended and itemized food and drink. Ask a CPA or enrolled agent before you claim anything. This is general information, not tax advice.
People also ask
Can I deduct 100% of a business meal with drinks?
Publication 463 says in general you can deduct only 50% of business meal expenses unless an exception applies.
Are client entertainment expenses deductible?
No. The IRS says you can no longer deduct expenses related to entertainment, amusement or recreation.
Does the IRS say anything about alcohol specifically?
Not in the parts we read. It refers to food and beverages generally.
Sources
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