A business card doesn't make an expense a business expense

A common mistake: everything paid with the business card goes into expenses. But the IRS looks at why you bought something, not which card you used.

Personal food

Groceries for home and lunch on your own are not deductible, even on the business card.

Business meals

50% deductible, and only with a note: who you were with and what you discussed. Without it, the deduction can be denied in an audit.

Entertainment

Concert or game tickets, golf with a client: 0%. Since 2018 these costs are not deductible at all.

Gifts to clients

Up to $25 per person per year. A $100 gift gives only a $25 deduction.

What to do

Pay for personal things with a personal card. If a personal purchase did go through the business card, record it as an owner draw, not an expense.