Eljay, LLP owns several apartment complexes and office buildings. The leasing and management of these buildings constitutes Eljay's only business activity. During 2021, Eljay incurred the following: (Click the icon to view the expenses incurred.) Read the requirements. Requirement a. What is the total amount Eljay may deduct because of these expenditures? Eljay may deduct A. none of the expenditures. Sec. 162(e) prohibits the deduction of lobbying and political expenses, and after 2017, this prohibition includes local political and lobbying costs. Furthermore, the total expenditures exceed the de minimis exception. B. the cost of travel expenses to the state capital, plus 100% of the cost of all other expenses under the de minimis exception. C. only the cost of making the presentation before a local council which was dealing with legislation that was of direct interest to Eljay's business and is less than the de minimis exception. D. only the cost of the billboard, travel expenses for the trip to the state capital, and the cost of the presentation. The remainder of the expenditures were incurred to influence legislation. Requirement b. Assume instead that Eljay did not travel to Washington, DC or to the state capital. Costs incurred were for billboard rental ($700), newsletter ($50) and presentation to the county council (\$150). What amount may Eljay deduct because of these expenditures? Eljay may deduct A. none of the expenditures. Sec. 162(e) prohibits the deduction of lobbying and political expenses, and after 2017, this prohibition includes local political and lobbying costs. Furthermore, the total expenditures exceed the de minimis exception. B. The total of the expenditures are deductible under the de minimis exception. C. only the cost of the billboard. The remainder of the expenditures were incurred to influence legislation. D. only the cost of making the presentation before a local council which was dealing with legislation that was of direct interest to Eljay's business and is less than the de minimis exception. (Enter a "0" if none of the expenses are deductible.) In this scenario, Eljay's total deduction is - $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 corporations. - $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 council protesting a proposed increase in the property tax levy. Eljay, LLP owns several apartment complexes and office buildings. The leasing and management of these buildings constitutes Eljay's only business activity. During 2021, Eljay incurred the following: (Click the icon to view the expenses incurred.) Read the requirements. Requirement a. What is the total amount Eljay may deduct because of these expenditures? Eljay may deduct A. none of the expenditures. Sec. 162(e) prohibits the deduction of lobbying and political expenses, and after 2017, this prohibition includes local political and lobbying costs. Furthermore, the total expenditures exceed the de minimis exception. B. the cost of travel expenses to the state capital, plus 100% of the cost of all other expenses under the de minimis exception. C. only the cost of making the presentation before a local council which was dealing with legislation that was of direct interest to Eljay's business and is less than the de minimis exception. D. only the cost of the billboard, travel expenses for the trip to the state capital, and the cost of the presentation. The remainder of the expenditures were incurred to influence legislation. Requirement b. Assume instead that Eljay did not travel to Washington, DC or to the state capital. Costs incurred were for billboard rental ($700), newsletter ($50) and presentation to the county council (\$150). What amount may Eljay deduct because of these expenditures? Eljay may deduct A. none of the expenditures. Sec. 162(e) prohibits the deduction of lobbying and political expenses, and after 2017, this prohibition includes local political and lobbying costs. Furthermore, the total expenditures exceed the de minimis exception. B. The total of the expenditures are deductible under the de minimis exception. C. only the cost of the billboard. The remainder of the expenditures were incurred to influence legislation. D. only the cost of making the presentation before a local council which was dealing with legislation that was of direct interest to Eljay's business and is less than the de minimis exception. (Enter a "0" if none of the expenses are deductible.) In this scenario, Eljay's total deduction is - $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 corporations. - $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 council protesting a proposed increase in the property tax levy