Final answer:
The statement is false; business meal deductions can be claimed when the meal is ordinary and necessary for conducting business, not solely with existing clients, but the rules require that the meal be directly related to or associated with business activities.
Step-by-step explanation:
The statement that 'the cost of a business meal is deductible only if an existing client is present at the meal' is false. According to tax regulations, you can deduct business meals if the meal is an ordinary and necessary part of conducting your business. However, there are specific guidelines that must be met, such as the meal being directly related to or associated with the active conduct of a trade or business, and the expense being both reasonable and not extravagant under the circumstances. The presence of a client, whether new or existing, is necessary, but the rule does not strictly limit the deduction to meetings with existing clients only. Additionally, tax laws may change, and it’s crucial to consult current regulations or a tax professional for the most accurate information.