Intuit Academy Tax Practice Exam 2025 – All-in-One Guide for Exam Mastery!

The choice regarding meals specifically for client meetings is accurate as a legitimate business expense for a sole proprietor. The IRS allows business owners to deduct meals that are directly related to the active conduct of a trade or business. When a sole proprietor meets a client for a business meal, the associated costs can be deducted, acknowledging the purpose of the meeting and the relationship building that occurs.

To further clarify, personal meals, even when out with clients, do not qualify for a deduction because they can be construed as personal rather than business-related expenses. Likewise, commuting expenses that occur when traveling to and from home are generally considered personal commuting costs and not deductible. Lastly, entertainment costs that are unrelated to work also do not qualify as deductions since they fail to meet the business connection criteria set by the IRS. Thus, the emphasis on meals tied directly to client meetings aligns with the standards for legitimate business expenses.