How to Classify Networking Meals

Key Points:

• Networking meals = business meals (50% deductible)

• IRS rules require:

  • Business contact present

  • Expectation of discussing business

  • Not lavish or extravagant

• No separate “Networking” category—use “Meals” in QuickBooks.

Recording Instructions:

1. In QuickBooks, categorize under: Meals – 50% deductible

2. Add memo: “Networking event with [Name], discussed [Topic]”

3. Attach the receipt.

4. If food is included in a ticket price, categorize the whole ticket as Meals.

Common Mistakes to Avoid:

• Recording as “Entertainment” (non-deductible)

• Forgetting to document business purpose