Billy Bob Sanders is a self-employed management consultant. He reports on the cash basis for tax purposes.
Question:
Billy Bob Sanders is a self-employed management consultant. He reports on the cash basis for tax purposes. For the current year, he paid the following expenditures related to his consulting business:
$12,000 business meals with clients; business was discussed during the meals
$8,000 hotel expenses while out of town on business
$3,000 Houston Astros season tickets; took clients to the games and business was discussed during the games
$4,000 continuing education fees
$5,000 country club dues; country club is used for business purposes
From these expenditures, calculate the total deduction amount that Billy Bob can take against his consulting income for the current year.
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman