Which expense is typically eligible as a business entertainment deduction?

The cost of meals during business meetings is typically eligible as a business entertainment deduction because these expenses are directly related to the conduct of business activities. The IRS allows businesses to deduct 50% of the cost of meals when they are provided to clients or customers during a business meeting. This deduction is aimed at promoting business discussions and relationships, making these expenses a legitimate cost of doing business.

Home mortgage payments, personal insurance premiums, and utilities' installation costs do not qualify as business entertainment deductions because they are considered personal or unrelated to the immediate activities of conducting business. Home mortgage payments pertain to personal living expenses, personal insurance premiums cover individual risks, and utilities' installation costs are generally necessary for a business's operational capacity but do not fall under entertainment-related expenses.