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.
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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.
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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.