Sandra, who owns a small accounting firm, pays $1,500 to the local country club for food and entertainment for her annual employee Christmas party. How much of the $1,500 in meals and entertainment cost can Sandra deduct?

Question

Quizplus · Accepted Answer

Under the IRS regulations, expenses for recreational, social, or similar activities primarily for the benefit of employees, such as holiday parties, are fully deductible. This means Sandra can deduct the entire $1,500 spent on the annual employee Christmas party.

Sandra, Who Owns a Small Accounting Firm, Pays $1,500 to the Local