Guide to Non Deductible Expenses for Business

Nondeductible business expenses are costs your business actually pays that federal tax law won’t let you subtract from taxable income. They fail the ordinary and necessary test in IRC 162(a), or they’re personal under IRC 262(a), or a targeted rule like IRC 274 disallows them. For 2026, business meals stay at 50 percent and employer-convenience meals dropped to zero under new IRC 274(o).