After a business meeting with a prospective client Holly took the client to dinner and the theatre. Holly paid $290 for the meal and $250 for the theatre tickets, amounts that were reasonable under the circumstances. What amount of these expenditures can Hollydeduct as a business expense?

Question

Quizplus · Accepted Answer

Holly can deduct 50% of the meal cost, which is $145, and the full cost of the theatre tickets, which is $250, totaling $395. However, due to tax law changes, entertainment expenses are generally not deductible, so only the meal portion is considered, resulting in a deduction of $145.

After a Business Meeting with a Prospective Client Holly Took