In 2020, the CEO of Crimson, Inc., entertains 6 clients at a skybox in Memorial Stadium for a single athletic event during the year. Substantive business discussions occurred at various times during the event. The box cost $11,300 per event and seats 8 people. (The cost of a regular, nonluxury box seat at Memorial ranges from $50 to $100.) Refreshments served during the event cost $1,920 (and were separately itemized on the bill Crimson received).

How much of these costs may Crimson deduct? $

Question 2

In 2020, Ava, an employee, who files single, has AGI of $42,000 and incurred the following miscellaneous itemized deductions this year:

• Union dues and work uniforms: $1,140
• Home office expenses: $3,420
• Unreimbursed employee expenses: $1,596
• Gambling losses to the extent of gambling winnings: $2,800.

What is Ava's total itemized deduction related to these items? $

Question 3

Jackson, a self-employed taxpayer, uses his automobile 78% for business and during 2020 drove a total of 20,600 business miles. Information regarding his car expenses is listed below.

Business parking	$ 220
Auto insurance	2,200
Auto club dues (includes towing service)	264
Toll road charges (business-related)	330
Oil changes and engine tune-ups	352
Repairs	242
Depreciation allowable	4,400
Fines for traffic violations (incurred during business use)	440
Gasoline purchases	4,840

What is Jackson's deduction in 2020 for the use of his car if he uses:

If required, round your answers to nearest dollar.

a. The actual cost method? $

b. The automatic mileage method? $

c. What records must Jackson maintain? Keeping a written or electronic log of miles driven, the dates the automobile was used, the location of travel, and the business purpose is enough evidence for the . If the is used, keeping copies of receipts, canceled checks, and bills in addition to a mileage log is sufficient. Records and logs should be kept contemporaneously (e.g., updated weekly or daily).