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Deducting Entertainment Expenses

Joe is a self-employed tax attorney who frequently entertains his clients at his country club. Joe's club expenses include the following:
Annual dues $ 5,400
Initiation fees 1,200
Charges for personal meals with his family 3,100
Meal and entertainment charges related to business use 4,000

Assuming the business meals and entertainment qualify as deductible entertainment expenses, what amount may Joe deduct as entertainment expenses?

A. $2,000.
B. $4,000.
C. $4,700.
D. $5,300.

Solution Summary

This solution provides the correct answer with calculations and explanation to the entertainment expense deduction question listed. The applicable IRS code reference is also included.