Holly took a prospective client to dinner, and after agreeing to a business deal, they went to the theater. Holly paid $460 for the meal and separately paid $182 for the theater tickets, amounts that were reasonable under the circumstances. What amount of these expenditures can Holly deduct as a business expense?

Question

Quizplus · Accepted Answer

Under the current tax law, Holly can deduct 50% of the meal expense, which is $230. Entertainment expenses, like theater tickets, are not deductible.

Holly Took a Prospective Client to Dinner, and After Agreeing