Jackie owns a temporary employment agency that hires personnel to perform accounting services for clients. During the year, her expenses for her clients include the following: Cab fare to and from restaurants $ 490 Gratuity at restaurants 440 Meals 4,700 Cover charges 390 All expenses are reasonable. Required: How much of these expenses can Jackie deduct? How is the deduction classified?

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
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Jackie owns a temporary employment agency that hires personnel to perform accounting services for clients. During the year, her expenses for her clients include the following:

Cab fare to and from restaurants $ 490
Gratuity at restaurants 440
Meals 4,700
Cover charges 390

All expenses are reasonable.

Required:

  1. How much of these expenses can Jackie deduct?
  2. How is the deduction classified?
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