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A self-employed dentist that lives in Maine and has incurred the following reasonable expenses during 2022: - $1,300 in airfare to repair out-of-town investment rental property - $800 in restaurant meals while attending a convention of dentist in Las Vegas. - $300 for tuition for an investment seminar "How to pick stocks." - $100 for tickets to the opera with other dentists to celebrate successful negotiation of a new dental wing of the hospital. How much can he deduct? A. None of the choices are correct.

B. $1,700 "for AGI" and $300 "from AGI"
C. $2,100 "for AGI"
D. $2,400 "for AGI" and $100 "from AGI" E. $2,100 "from AGI"

1 Answer

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The self-employed dentist can deduct $2,100 "for AGI" from his taxable income.

Step-by-step explanation:

The self-employed dentist can deduct $2,100 "for AGI" from his taxable income. Let's break down the deductions for each expense:

1. Airfare for repairing rental property: The airfare expenses of $1,300 to repair the out-of-town investment rental property can be deducted "for AGI" as a necessary expense incurred for business purposes. This expense is directly related to the dentist's rental property investment, which is considered a business activity.

2. Restaurant meals at the convention: The $800 spent on restaurant meals while attending the dentist convention in Las Vegas can also be deducted "for AGI" as a business expense. The expenses incurred while attending conventions, seminars, or meetings directly related to the dentist's profession can be deducted.

3. Tuition for the investment seminar: The dentist can deduct the $300 tuition expense "for AGI" as it is associated with improving their investment skills, which are relevant to their business.

4. Tickets to the opera: However, the $100 spent on opera tickets with other dentists to celebrate the successful negotiation of a new dental wing of the hospital cannot be deducted. This is considered an entertainment expense and is no longer deductible under the current tax laws.

In summary, the dentist can deduct a total of $2,100 "for AGI" from their taxable income, covering the airfare, restaurant meals at the convention, and the investment seminar tuition. The opera tickets expense is not deductible due to the elimination of entertainment expense deductions.

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