Final answer:
True, 50% of the cost of meals is deductible when a taxpayer is traveling for business overnight. It is important to document such expenses and follow IRS guidelines for business travel deductions.
Step-by-step explanation:
The statement is true; 50% of the cost of meals is deductible when a taxpayer is traveling for business and is going to be away from home overnight. Understanding business travel deductions is essential for properly filing taxes. It is important to follow the IRS guidelines on what constitutes a business travel expense and ensure that the travel is indeed overnight, away from the taxpayer's tax home, and necessary for the taxpayer's business or job. Documentation of these expenses is also critical for substantiation in case of an audit. The 50% deduction rate applies to the taxpayer's own meals during the trip, not for meals provided to others, and there are limits if the meals are considered lavish or extravagant.