David purchases a yacht solely for the purpose of entertaining real estate clients.He wishes to position himself as a high-end real estate salesperson specializing in very expensive residences and uses the yacht only for business entertainment.During 2018, his expenses for maintaining and operating the yacht, including depreciation, were $28,000.In addition, he incurred $9,000 of catering expenses for meals he provided to business clients on the yacht.What is David's tax deduction in 2018?Explain.

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The Answer of David purchases a yacht solely for the purpose of entertaining real estate clients.He wishes to position himself as a high-end real estate salesperson specializing in very expensive residences and uses the yacht only for business entertainment.During 2018, his expenses for maintaining and operating the yacht, including depreciation, were $28,000.In addition, he incurred $9,000 of catering expenses for meals he provided to business clients on the yacht.What is David's tax deduction in 2018?Explain.

David Purchases a Yacht Solely for the Purpose of Entertaining