Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 3, Problem 13P
Marty is a sales consultant. Marty incurs the following expenses related to the entertainment of his clients in the current year:
Dues to a country club $4,500
(The country club was used for business
25 days of the total 75 days that it was used.)
Business meals at the country club
not associated with golf or tennis 1,200
Dues to a tennis club 1,000
(The club was used 75 percent for directly
related business.)
Tennis fees (personal use) 260
Business meals at various restaurants 1,844
- How much is Marty's deduction for meals and entertainment expenses for the current year?
- For each item listed above that you believe is not allowed as a deduction, explain the reason it is not allowed.
$__________
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Students have asked these similar questions
Milly operates a small business and incurs the following expenses:
Annual dues Tampa Bay Golf Club
$2,000
Meals with clients after golf
500
Meals with clients at the Club's dining
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600
Greens fees (personal and with clients)
700
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Total
$4,050
Calculate the portion of the $4,050 that Milly can deduct.
Grace is a self-employed sales consultant who spends significant time entertaining potential customers. She keeps all the appropriate records to substantiate her entertainment. She has the following expenses in the current year:
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Chapter 3 Solutions
Income Tax Fundamentals 2020
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