Sally and Martha Are Tax Accountant Partners Operating a Tax

question 98

Essay

Sally and Martha are tax accountant partners operating a tax firm in San Diego. Every year, they attend the Tax Planning Forum in Las Vegas featuring nationally renowned tax experts. The Forum lasts for 2 days. One evening Sally and Martha attend a show and another evening they lose $10 gambling on the nickel slot machines. Their expenses are as follows: $\begin{array}{lr}\text { Airfare } & \$ 400 \\\text { Hotels } & 300 \\\text { Meals } & 180 \\\text { Forum registration } & 1,000 \\\text { Tickets to show } & 100 \\\text { Gambling loss } & 10\\&\$1,990\end{array}$ Calculate the firm's deduction for attending this event.

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Definitions:

Retailers

Businesses or individuals that sell goods directly to consumers for personal use, rather than for resale or wholesale.

Wholesalers

Entities engaged in selling goods in large quantities to retailers, other merchants, or industrial, institutional, and commercial users.

North American Industry Classification System

A classification system that categorizes businesses into detailed sectors and industries, primarily to facilitate economic data analysis and reporting.

NAICS

The North American Industry Classification System; a standard used by federal statistical agencies for classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. economy.