List and briefly describe three of the exceptions to the rule that only 50 percent of the cost of business meals and entertainment can be deducted in the determination of Net Income For Tax Purposes.

Question

Quizplus · Accepted Answer

The Answer is The text describes the following exceptions, any three of which would satisfy the requirements of the question:
• Long-haul truck drivers can deduct more than 80 percent of these costs.
• The costs incurred by hotels and restaurants in providing meals and entertainment to their clients are fully deductible.
• Meals and entertainment expenses relating to a fund raising event for a registered charity are fully deductible.
• Where the taxpayer is compensated by someone else for the cost of food, beverages, or entertainment, the amounts will be fully deductible against this compensation.
• When amounts are paid for meals or entertainment for employees and, either the payments create a taxable benefit for the employee, or the amounts do not create a taxable benefit because they are being provided at a remote work location, the amounts are fully deductible to the employer.
• When amounts are incurred by an employer for food, beverages, or entertainment that is generally available to all individuals employed by the taxpayer, the amounts are fully deductible. (Maximum of six such special events per year.)
• Meals included in the price of airline, bus, and rail tickets are viewed by the government as immaterial. The food component of the ticket price is deemed to be nil.

List and Briefly Describe Three of the Exceptions to the Rule