John is a self-employed computer consultant who lives and works in Dallas.John paid for the following activities in conjunction with his business.Which of the following expenditures is not deductible in any amount? 1.Dinner with a potential client where the client's business was discussed.
2)A trip to Houston to negotiate a contract.
3)A seminar in Houston on new developments in the software industry.
4)A trip to New York to visit a school chum who is also interested in computers.
A)1 only.
B)2 only.
C)3 only.
D)4 only.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

The trip to New York to visit a school chum who is also interested in computers is not a deductible business expense. It is a personal expense. The other three expenses are deductible as they are either directly related to business activities or relate to the improvement of John's professional knowledge and skills.

John Is a Self-Employed Computer Consultant Who Lives and Works