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

question 80

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 is a condition for a deduction.
• E) All of these are conditions for a deduction.

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Definitions:

Past Events

Occurrences or happenings that took place in the past.

Yardstick Approach

A method of performance evaluation where an individual's performance is compared against a standard or benchmark.

Alternatives

Different options or choices available in a given situation.

Ethical Recommendations

Suggestions or advice based on moral principles, aimed at guiding behavior or decision-making in a responsible manner.