Final answer:
The statement is typically true as the IRS generally allows only a 50% deduction for business meals, with certain temporary exceptions that have allowed for 100% deductions given specific conditions and timeframes.
Step-by-step explanation:
The statement, “Only half the cost of a business meal is deductible even if the meal is associated with the active conduct of business,” is generally true. For tax purposes, the Internal Revenue Service (IRS) in the United States commonly allows businesses to deduct only 50% of the cost of business meals.
This is applicable if the meals are not lavish or extravagant, the taxpayer or an employee of the taxpayer is present at the furnishing of the meal, and the meal is associated with the active conduct of the taxpayer's trade or business.
However, there have been temporary adjustments to this rule, such as provisions in recent legislation like the Tax Cuts and Jobs Act and the Consolidated Appropriations Act, 2021, which allowed for a 100% deduction for business meals under certain conditions and for a specific timeframe. It is important for taxpayers to keep up with current tax laws as they can change periodically.