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Eljay, , LLP owns several apartment compleses and office buildings. The leasing and management of these building constitutes Eljay's only business activity. During the current
Eljay, , LLP owns several apartment compleses and office buildings. The leasing and management of these building constitutes Eljay's only business activity. During the current year Eljay incurred the following: *$900 in airfare and lodging for a trip to Washington, D.C. The purpose of the trip was to protest proposed tax rate increases for individuals and corporation. *$700 for renting space on billboards along the highway. The billboards express its concern regarding pending legislation that would significantly increase property taxes. *$500 in airfare and hotel bills incurred on a trip to the state capital. The purpose of the trip was to meet with the legislative subcommittee on property taxation. *$50 for a subscription to a political newsletter published by a national political party. *$150 in making a presentation to the county concil protesting a proposed increase in the property tax levy. A. What is the total amonunt Eljay may deduct because of these expenditures? B. Assume all the same facts as in Part A except that the expenses for the trip to the state capital are only $300 instead of $500. What amount may Eljay deduct because of these expenditures
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