Question

12. ( 3 points). girard is a self-employed marketing consultant who spends significant time entertaining potential customers. he keeps all the appropriate records to substantiate his entertainment. he has the following business-related expenses in 2022.business meals provided by restaurants$7,000tickets to baseball games500tickets to football games500yacht maintenance (the yacht is all business use)6,000 what is the tax-deductible meals and entertainment expense girard may claim in 2022? on which tax form should he claim the deduction?

Answer 1

Girard can claim $3,500 for business meals provided by restaurants as this amount qualifies for a 50% deduction.

Tickets to events and yacht maintenance are not typically deductible.

Deductions are reported on Schedule C (Form 1040).

Step-by-step explanation:

Girard, a self-employed marketing consultant, may claim tax-deductible meals and entertainment expenses for 2022. According to tax law changes, entertainment expenses such as tickets to baseball or football games are generally no longer deductible.

However, business meals provided by restaurants are typically 50% deductible, making $3,500 of the $7,000 spent deductible. Yacht maintenance is not considered a deductible entertainment expense unless it directly pertains to the business, which seems unlikely in most cases.

The allowable deduction for meals should be claimed on Schedule C (Form 1040), which is used to report income and expenses for self-employed individuals.