Question

Peter an attorney, invited a major client in 2018 to see an NJ Devils Hockey game. It cost him $450 for the two tickets and dinner cost $130. How much can Peter deduct as a business expense in 2018? Explain your answer.

Answer 1

Ticket cost will not be part of buisness expense

Dinner cost allowed at 50% = 130*50%= 65

Therefore, business expense = $65

Explantion:-

Welcomed guidance has been issued by the IRS that confirms businesses can generally continue to deduct 50 percent of the cost of business meals, including those incurred while meeting with or entertaining customers and clients.   However, pursuant to changes made by tax reform, the cost of the entertainment itself can no longer be deducted for 2018 and beyond even when business discussions are conducted. ​