A sole proprietor is allowed a deduction for a $25 gift he gives to his office manager on her birthday.

Question

Quizplus · Accepted Answer

According to IRS regulations, a sole proprietor may deduct up to $25 per recipient per year for gifts given for business purposes. Giving a gift to an office manager on her birthday can be considered a business expense, and therefore the sole proprietor is allowed to deduct it from his or her taxes.

A Sole Proprietor Is Allowed a Deduction for a $25