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:

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Behavioral Economist

An expert who studies the effects of psychological, cognitive, emotional, cultural, and social factors on economic decisions by individuals and institutions.

Sugary Treats

Foods high in sugar content, often lacking in nutritional value, and considered to be indulgent or non-essential for a healthy diet.

Long-Term Costs

The total expenses incurred by a business in producing goods or services over an extended period, including both fixed and variable costs.