**YOU MUST PROVIDE AN EXACT SOURCE OR EXPLANATION OF YOUR ANSWER** Self Employed
ID: 444819 • Letter: #
Question
**YOU MUST PROVIDE AN EXACT SOURCE OR EXPLANATION OF YOUR ANSWER**
Self Employed person deducts 100% of Meals & Entertainment below the line, whereas an Employee takes a 50% deduction below the line, as an itemized deduction.
Self Employed person deducts 50% of Meals & Entertainment above the line, whereas an Employee takes a 50% deduction below the line, as an itemized deduction.
Self Employed person deducts 100% of Meals & Entertainment above the line, whereas an Employee takes a 100% deduction below the line, as an itemized deduction.
Self Employed person deducts 50% of Meal & Entertainment below the line, and an Employee takes a 50% deduction below the line, both as an itemized deduction.
How is this deduction different for a self employed person versus an employee. (hint - where in the taxable income formula does the deduction fall for each- above the line, or below the line? See IRS Pub 17, Page 201 for a discussion of this topic. )Explanation / Answer
d) Self Employed person deducts 50% of Meal & Entertainment below the line, and an Employee takes a 50% deduction below the line, both as an itemized deduction.
Explanation:
Self employed and employee have 50% Meal & Entertainment deduction.
All business expenses whether Self employed or employee Meal & Entertainment comes under below the line only.
No difference on meals and entertainment for both
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.