Which of the following expenses is/are deductible?
I.Transportation and lodging expenses of $3,000 incurred to monitor state legislation that may affect the taxpayer's business.
II.Lobby expenses of $300 during the year to influence local town legislators to support pro-business legislation.

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 $3,000 incurred to monitor state legislation that may affect the taxpayer's business.
II.Lobby expenses of $300 during the year to influence local town legislators to support pro-business legislation.
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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

Statement I expenses can be deductible as they are directly related to the taxpayer's business. However, Statement II expenses are lobbying expenses, which are not deductible.

Which of the Following Expenses Is/are Deductible