Maria has her own accounting practice in Victoria, B.C. During 2020 she paid $1,650 to attend the following conventions: • $400 for a 2 day convention on "Tax issues for the owner/manager" held at Vancouver, B.C.
• $500 for a 3 day convention on "Attracting new clients" held at Kelowna, B.C.
• $750 for a 5 day convention on "IFRS implementation" held at Whistler, B.C.
The fees included all meals served during the convention. Maria's total deductible convention expense for tax purposes is:

Question

Quizplus · Accepted Answer

For tax purposes, only two conventions can be deducted per year. The deductible amount is limited to $1,000 per convention. Therefore, Maria can deduct $400 for the first convention and $500 for the second, totaling $900. Additionally, meals are subject to a 50% limitation, but since the total is under $1,000 per convention, the full amount is deductible. Thus, the total deductible expense is $1,050.

Maria Has Her Own Accounting Practice in Victoria, B