Which of the following is a true statement?
A)Meals are never deductible as a business expense.
B)An employer can only deduct half of any meals provided to employees.
C)The cost of business meals must be reasonable.
D)A taxpayer can only deduct a meal for a client if business is discussed during the meal.
E)None of the choices are true.

Question

Quizplus · Accepted Answer

The cost of business meals must be reasonable in order to be deductible as a business expense. Meals can be deductible as a business expense if they are directly related to or associated with the active conduct of a trade or business. There are certain restrictions on deducting meals, such as only being able to deduct 50% of the cost and only being able to deduct meals for clients if business is discussed during the meal. However, none of the other choices are true statements.

Which of the Following Is a True Statement