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In 2021, Robert takes four key clients and their spouses out to dinner at a local restaurant. Business discussions occurred over dinner. Expenses were $700 (drinks and dinner) and $140 (tips to servers). If Robert is self-employed, how much can he deduct for this event

Sagot :

The amount deductible by Robert for year 2021 against the meal and entertainment expenses will be 50% that is $420 from the total expense amount of $840.

What is business deductions?

The business deductions are the amounts those are allowed to be deducted while filling the income tax. There is certain criteria to deduct different expenses.

As per the IRS regulation, when the tax payer is self-employed then the amount that can be deducted against meal and entertainment can be 50% of the total expense.

Therefore, Robert can deduct only $420 from the taxable income.

Learn more about business deductions, here:

https://brainly.com/question/13870330

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