Question

Rand , a self-employed salesperspnpurchased 2 tickets in 2021 for himself and a prospective client..he also took him out to dinner the tickets costs $200 ea and meal cost $110 how much can rand deduct as business expense

Answer 1

The cost of the two tickets is 200 * 2 = $400.

So, the total cost of the tickets and the meal is 400 + 110 = $510.

As a self-employed salesperson, Rand can deduct the entire amount of $510 as a business expense on his taxes, as long as it is considered a legitimate business expense. This means that he must be able to prove that the tickets and meal were directly related to a business activity, such as attempting to secure a client.

It is important to keep receipts and other documentation to support the business nature of the expenses in case of an audit by the tax authorities.