Nicholas wanted to take an important customer to a hockey game in 2017. Although the face value of a ticket was only $50, the only way he could get tickets was by paying a scalper $160 for each ticket. Assuming all other deductibility requirements are met, how much could Nicholas deduct for each ticket in 2017?

Question

Quizplus · Accepted Answer

In 2017, the IRS allowed a deduction for entertainment expenses, including tickets, up to 50% of the face value. Therefore, Nicholas could deduct 50% of the $50 face value, which is $25.

Nicholas Wanted to Take an Important Customer to a Hockey