Jack is a lawyer who is a member at Ocean Spray Country Club where he spends $7,200 in dues, $4,000 in business meals, and $2,000 in green fees to entertain clients. He has separate invoices for the meals. He is also a member of the local Rotary club where he meets potential clients. The dues for the Rotary club are $1,200 a year. How much of the above expenses can Jack deduct as business expenses?

Question

Quizplus · Accepted Answer

Jack can deduct the $4,000 in business meals and the $1,200 in Rotary club dues as business expenses. He cannot deduct the $7,200 in Ocean Spray Country Club dues or the $2,000 in green fees because they are considered entertainment expenses and are no longer deductible. Therefore, the total amount he can deduct is $4,000 + $1,200 = $5,200. Option B is the closest choice to this amount.

Jack Is a Lawyer Who Is a Member at Ocean