1. Travel/transportation expenses of a self-employed person are deductible when:

a. They are properly substantiated (taxpayer maintains the documents & receipts)

c. both a. and b.

d. They are claimed as itemized deductions.

b. They are ordinary and necessary

2. Charlie is married and runs a software business. Charlies spouse is an elementary school bus driver. Charlie provides a $500 antique clock to one of his best married customers as a gift. As a result, Charlie and his wife may take how much of the $500 cost of the clock as a business (gift) deduction? (no dollar sign needed)

3. Which of the following is most likely to be a deductible business expense in full?

a. $400 paid to take a client to lunch

d. $400 paid to attend courses at a community college

c. $400 paid for a months worth of utilities at a business office

b. $400 paid for a vacation to Las Vegas