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10 October, 10:57

Joe is a self-employed tax attorney who frequently entertains his client at his country club, joe's club expenses include the following:

annual dues $5400

initiation fees 1200

charges for personal meals with his family 3100

meal and entertainment charges related to business use 4000

assuming the business meals and entertainment qualify as deductible entertainment expenses, joe may deduct

a. 2000

b. 4700

c. 5300

d. 4000

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Answers (1)
  1. 10 October, 12:26
    0
    A

    Explanation:

    Deductible expenses are cost that can be subtracted from an individual's income before tax is paid.

    Joe as a self employed will gets no deductions for his annual dues, initiation fees and personal meal with family. But a 50% deduction is allowed under law of the Internal Revenue Code for charges related to business use and are adequately supported by business records ... If he spends $4000 for charges related to business use

    There 50% * 4000

    =$2000 may be deducted
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