In Order to Deduct a Portion of the Cost of a Business

question 21

Multiple Choice

In order to deduct a portion of the cost of a business meal, which of the following conditions must be met?

• A)A client (not a supplier or vendor)must be present at the meal.
• B)The taxpayer or an employee must be present at the meal.
• C)The meal must occur on the taxpayer's business premises.
• D)None of these choices is a condition for the deduction.
• E)All of the choices are conditions for a deduction.

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Definitions:

City Ordinance

A rule or law enacted by a local government authority to regulate, permit, or prohibit certain activities within its jurisdiction.

Consecutive Sundays

Two or more Sundays that follow one directly after the other without interruption.

Investor Liability

Refers to the legal and financial responsibilities borne by investors, including potential losses or debts incurred from investments.

Statutory Minimum

The lowest amount or level that is legally allowed, often referring to wages, working conditions, or environmental standards.