"Which of the following is not likely to be a deductible expense?"
The cost of tickets to a stage play for a client and the taxpayer.
The cost for Rosa to take a potential customer to lunch to describe a new service Rosa’s company is offering.
Unfortunately, the customer explains that they are not interested in the service.
The cost of a party for all of Dan’s employees to celebrate a record-breaking profits year.
The dues for Charles Coke to join the City Chamber of Commerce to generally improve the reputation of his business in the community. None of the above are deductible expenses.

The cost of tickets to a stage play for a client and the taxpayer is not likely to be a deductible expense because it does not states the business interest and purpose in the outing.

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BenitoMarin BenitoMarin · Answer 2 · 2020-02-14T01:17:39+01:00

Answer:

The correct answer is letter "A": The cost of tickets to a stage play for a client and the taxpayer.

Explanation:

Deductible expenses are those expenditures that can be itemized in a taxpayer's tax return so it can decrease the individual Adjusted Gross Income (AGI) which means paying fewer taxes. When talking about businesses, common deductible expenses are advertising, consultation expenses, employees' educational costs or bank charges.

Taking a customer to a stage play does not have any business purpose. Then, the costs of the tickets for that stage play are unlikely to be considered as a deductible expense.