Marty is an employee of Apricot, Inc. Marty incurs the following expenses related to entertainment of his clients in 2010:
Dues to a country club $4,500 (The country club was used for business 25 days of the total 75 days that it was used.)
Business meals at the country club 850
Dues to a tennis club 1,000 (The club was used 75 percent for directly related business.)
Tennis fees (personal use) 260
Business meals at various restaurants 2,250
a. How much is Marty's deduction for entertainment expenses for 2010 (before the 2 percent of adjusted gross income limitation)?
b. For each item above that you believe is not allowed as a deduction, explain the reason it is not allowed
Click here for the solution: Marty is an employee of Apricot, Inc
