angelo poggi is a commission salesperson with a base salary of $98,500. in 2024, he earns commissions of…

angelo poggi is a commission salesperson with a base salary of $98,500. in 2024, he earns commissions of $15,900. of this amount, he received $8,700 in 2024 and $7,200 in january 2025. in 2024, all of his expenses relate to overnight travel. he incurs the expenses as shown.\n\nmeals and entertainment with clients $ 22,500\nhotel and airline tickets 12,400\n\nwhat is the amount of angelos maximum deduction for these expenses in determining his 2024 employment income?\n\na. $23,650\nb. $8,700\nc. $12,400\nd. $15,900\ne. $34,900

angelo poggi is a commission salesperson with a base salary of $98,500. in 2024, he earns commissions of $15,900. of this amount, he received $8,700 in 2024 and $7,200 in january 2025. in 2024, all of his expenses relate to overnight travel. he incurs the expenses as shown.\n\nmeals and entertainment with clients $ 22,500\nhotel and airline tickets 12,400\n\nwhat is the amount of angelos maximum deduction for these expenses in determining his 2024 employment income?\n\na. $23,650\nb. $8,700\nc. $12,400\nd. $15,900\ne. $34,900

Answer

Explanation:

Step1: Identify deductible expenses

Hotel and airline tickets are fully deductible business - related travel expenses. Meals and entertainment with clients may have limitations. In general, for 2024, meal expenses (assuming they meet the requirements) are 50% deductible and entertainment is not deductible.

Step2: Calculate deductible meal expense

Deductible meal expense = $22500\times0.5=$11250$.

Step3: Add deductible hotel and airline tickets

Total deductible expense = Deductible meal expense+Hotel and airline tickets = $11250 + 12400=$23650$.

Answer:

A. $23,650