Which of the following expenses is/are deductible?
I.Transportation and lodging expenses of $4,000 to influence state legislation that may affect the taxpayer's business.
II.A $4,000 contribution to the mayor's campaign fund.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

Which of the following expenses is/are deductible?
I.Transportation and lodging expenses of $4,000 to influence state legislation that may affect the taxpayer's business.
II.A $4,000 contribution to the mayor's campaign fund.
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A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

Neither transportation and lodging expenses to influence legislation nor contributions to political campaigns are deductible expenses for tax purposes. Influencing legislation is considered lobbying, and political contributions are not deductible as they do not directly relate to the conduct of a taxpayer's business.

Which of the Following Expenses Is/are Deductible