A taxpayer takes six clients to an NBA playoff game. If all of the tickets (list price of $120 each) are purchased on the Internet for $1,800 ($300 each), only $60 ($120 × 50% cutback adjustment) per ticket is deductible.

Question

Quizplus · Accepted Answer

Since the tickets were purchased at a discounted price of $300 each, the deductible amount per ticket is only $60 (50% of $120).

A Taxpayer Takes Six Clients to an NBA Playoff Game