Paul,a business consultant,regularly takes clients and potential clients out to dinner.In order to deduct these expenses,Paul must maintain records substantiating all of the following except
A)the time and place of the dinners.
B)the business relationship with the person invited.
C)the business purpose of the dinners.
D)All of the above information must be substantiated in order to deduct the entertainment costs.

Question

Quizplus · Accepted Answer

All of the above information (time and place, business relationship, and business purpose) must be substantiated in order to deduct entertainment costs. This means that Paul must keep detailed records of who he took to dinner, where and when the dinner took place, and the purpose of the dinner (i.e. to discuss potential business opportunities). Failure to keep accurate records could result in the deduction being disallowed by the IRS.

Paul,a Business Consultant,regularly Takes Clients and Potential Clients Out to Dinner.In