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H Inc. incurred (and paid) the following expenses in the current year: $2,000 for hockey tickets...

H Inc. incurred (and paid) the following expenses in the current year: $2,000 for hockey tickets to entertain customers, $10,000 for permanent landscaping on the head office grounds, and $2,000 broker’s fee to purchase publicly traded securities. Determine the amount deductible for tax purposes in the current year.

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Answer #1

The amount deductible for tax purposes in the current year = $10000 ($10,000 for permanent landscaping on the head office grounds)

No expenses incurred to entertain customers are deductible.

Transactions fees like brokerage fees and commissions paid to buy or sell stocks are not allowed for a tax deduction.

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