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

1 answer

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.