We get it—coffee fuels productivity, creativity, and connection. But if you’re a business owner or self-employed professional, you might be wondering: Can I write off all those coffee shop receipts come tax time?
The short answer is: Sometimes. Let’s break down when your caffeine fix can be considered a legitimate business expense—and when it’s just…well, a personal indulgence.
When Coffee Is Tax Deductible
The IRS allows deductions for ordinary and necessary business expenses—and that includes meals and beverages tied to legitimate business activities. Here are a few scenarios where that coffee could count:
- Business Meetings with Clients or Partners: Meeting a client at a coffee shop to discuss a project? That cup of joe (and theirs) is likely deductible as a business meal expense.
- Networking Events or Industry Meetups: Grabbing coffee at an event where you’re networking with others in your industry can potentially count—especially if business discussions take place.
- Team Meetings Offsite: Taking your staff out for a working coffee break to brainstorm or debrief? That may qualify as a deductible team expense.
In most of these cases, you may be able to deduct 50% of the cost under IRS meal expense guidelines. Just be sure to document:
- The date
- The amount spent
- The business purpose
- Who was present (client, team member, etc.)
When It Isn’t Deductible
- Your Morning Coffee Alone: Grabbing your regular daily latte on the way to work? That’s considered a personal expense and isn’t deductible—even if it gets you in a business-ready mindset.
- Casual Catch-Ups with Friends: Unless you’re discussing business with someone who is actually involved in your work (a client, vendor, or collaborator), it probably doesn’t qualify.
Keep It Caffeinated—but Smart
We love a good latte as much as the next entrepreneur, but when it comes to tax deductions, intent matters. Keep good records, be reasonable, and don’t overdo it—because yes, the IRS can raise an eyebrow at hundreds of coffee charges.
Need help determining what qualifies as a legitimate business expense? At Basso & Guida, we specialize in precision in numbers and passion in service—so you’re never left guessing when it comes to deductions.
Let’s Talk Over Coffee—Deductible or Not
If you’re looking for expert tax advice or personalized support for your business finances, we’d love to chat. Contact us today to schedule a consultation and let’s get your finances in great shape—latte optional.
