Question

Gary is a self-employed accountant who pays $2,000 for business meals. How much of a deduction can he claim for the meals and where should the deduction be claimed?

Answer 1

Answer:

He can Claim a 50% deduction on the Schedule C Business Expense Deductions

Explanation:

Business Meals fall under the category of the small businesses tax deductions made available under Schedule C by the Internal Revenue Service that can small businesses can take advantage of.

1. The business owner or employee must be present at the meal.
2. The meal must not be extravagant under any circumstances.
3. The meal must be an ordinary and necessary part of carrying on businesses.

Gary as a self-employed accountant is a small service provider who can take advantage of this deduction.