Gary is a self-employed accountant who pays $2,000 for business meals. How much of a deduction can he claim for the meals and where should the deduction be claimed?
A)50 percent, miscellaneous itemized deduction
B)50 percent, Schedule C deduction
C)100 percent, miscellaneous itemized deduction
D)100 percent, Schedule C deduction

Question

Quizplus · Accepted Answer

Gary can deduct 50 percent of his business meal expenses directly on Schedule C, Profit or Loss From Business. This reduces his self-employment income and tax. The Tax Cuts and Jobs Act of 2017 generally limits the deduction for meals to 50% of the expense, and it should be claimed on Schedule C for self-employed individuals.

Gary Is a Self-Employed Accountant Who Pays $2,000 for Business