Question

arthur had the following business expenses for tax year 2022:entertainment: $2,330meals: $1,448 (the meals were provided by a restaurant.)what is arthur's allowable business expense deduction for 2022?

Answer 1

Arthur's allowable business expense deduction for 2022 would be $2,613.

Step-by-step explanation:

In order to determine Arthur's allowable business expense deduction for 2022, we need to consider the specific rules set by the Internal Revenue Service (IRS).

For entertainment expenses, the IRS allows a deduction of 50% of the total amount. Therefore, Arthur's allowable business expense deduction for entertainment would be $2,330 * 50% = $1,165.

For meals provided by a restaurant, the IRS allows a deduction of 100% of the total amount. Hence, Arthur's allowable business expense deduction for meals would be $1,448 * 100% = $1,448.

Therefore, Arthur's total allowable business expense deduction for 2022 would be $1,165 + $1,448 = $2,613.