In 2019, robert entertains four key clients and their spouses at a nightclub. business discussions occurred over dinner and prior to the entertainment beginning. expenses were $285 (limo charge), $125 (cover charge), $1,190 (drinks and dinner), and $238 (tips to servers). if robert is self-employed, how much can he deduct for this event?

Total deduction=$680

Explanation:

Deductions:

Deductions are a source of revenues and expenses that a person can deduct from the annual gross income before calculating the annual gross income. after deductions, the taxable income gets reduced which ultimately results in fewer taxes.

Answer and Explanation:

Calculate the amount of deduction as shown below:

DetailsAmount

Limo charges$200

Add: Cover charge (50% cutback adjustment)  

($120*50%)$60

Add: Drinks and Dinner (50% cutback adjustment)  

($700*50%)$350

Add: Tips to servers (50% cutback adjustment)  

($140*50%)$70

Total deduction$680

C. is built on a solid foundation and unlikely to shift

Explanation: Just took the test on 2020e.