Question

Keisha had the following business expenses for Tax Year 2024:
Entertainment, $3,750
Meals while traveling for business and conferences, $1,937
What is Keisha's allowable business expense deduction for 2024?
$969
$1,937
$2,844
$5,687

Answer 1

For Tax Year 2024, the rules for deducting business expenses are as follows:

1. **Entertainment Expenses**: Generally, entertainment expenses are not deductible.
2. **Meals while Traveling for Business**: The IRS allows a deduction of 50% of the cost of meals while traveling for business.

Given Keisha's expenses:
- Entertainment: $3,750 (not deductible)
- Meals while traveling: $1,937 (deductible at 50%)

Calculating the deductible amount for meals:
- Deductible meals expense = $1,937 * 50% = $968.50

Since tax deductions are typically rounded to the nearest dollar for tax filings:
- Allowable deduction for meals = $969

Therefore, Keisha's allowable business expense deduction for 2024 is **$969**.