Linda is self-employed and spends $600 for business meals and $900 for business entertainment in 2015. What is Linda allowed to deduct in 2015 for these expenses?

Question

Quizplus · Accepted Answer

Business meals and entertainment expenses are deductible up to 50% of the actual cost. Therefore, the deductible amount for meals is $600 x 50% = $300 and for entertainment is $900 x 50% = $450. The total deductible amount is $300 + $450 = $750.

Linda Is Self-Employed and Spends $600 for Business Meals and $900