Ed is a self-employed heart surgeon who has incurred the following reasonable expenses.How much can Ed deduct? $1,000 in airfare to repair investment rental property in Colorado.$500 in meals while attending a medical convention in New York.$300 for tuition for an investment seminar "How to pick stocks."
$100 for tickets to a football game with hospital administrators to celebrate successful negotiation of a surgical contract earlier in the day.

Question

Quizplus · Accepted Answer

Ed can deduct $1,000 in airfare to repair investment rental property in Colorado and $500 in meals while attending a medical convention in New York. These expenses are deductible "for AGI" because they are ordinary and necessary expenses incurred in the production of income. Ed cannot deduct $300 for tuition for an investment seminar "How to pick stocks" because this expense is not ordinary and necessary for his business. Ed cannot deduct $100 for tickets to a football game with hospital administrators to celebrate successful negotiation of a surgical contract earlier in the day because this expense is not ordinary and necessary for his business.

Ed Is a Self-Employed Heart Surgeon Who Has Incurred the Following