Question
Willow had the following business expenses for Tax Year 2023:
Entertainment, $2,330
Meals while traveling for business and conferences, $1,448
What is Willow's allowable business expense deduction for 2023?
$724
$1,448
$1,889
$3,778
Entertainment, $2,330
Meals while traveling for business and conferences, $1,448
What is Willow's allowable business expense deduction for 2023?
$724
$1,448
$1,889
$3,778
Answers
GPT-4o mini
For the Tax Year 2023, the IRS allows businesses to deduct certain expenses related to meals and entertainment, but the treatment of these expenses can vary.
1. **Meals while traveling for business**: You can generally deduct 100% of meals that are directly related to business travel. Since Willow spent $1,448 on meals while traveling for business, this entire amount is deductible.
2. **Entertainment expenses**: As a reminder, entertainment expenses are not deductible under current IRS rules. Therefore, Willow cannot deduct the $2,330 she incurred for entertainment.
Now, let's sum up the deductible expenses:
- Meals while traveling for business: $1,448
- Entertainment: $0 (not deductible)
Willow's total allowable business expense deduction for 2023 is:
**$1,448.**
Therefore, the correct answer is:
**$1,448.**
1. **Meals while traveling for business**: You can generally deduct 100% of meals that are directly related to business travel. Since Willow spent $1,448 on meals while traveling for business, this entire amount is deductible.
2. **Entertainment expenses**: As a reminder, entertainment expenses are not deductible under current IRS rules. Therefore, Willow cannot deduct the $2,330 she incurred for entertainment.
Now, let's sum up the deductible expenses:
- Meals while traveling for business: $1,448
- Entertainment: $0 (not deductible)
Willow's total allowable business expense deduction for 2023 is:
**$1,448.**
Therefore, the correct answer is:
**$1,448.**