What is the allowable deduction for meals in the context of Sara’s travel expenses?

In the context of travel expenses, the allowable deduction for meals is typically determined by either the actual expenses incurred or a standard meal allowance based on predefined rates set by the IRS. The correct answer reflects the calculated deduction Sara can claim for her meals during her business travel.

To establish this amount, one would generally consider factors such as the duration of the travel, the location, and whether Sara is adhering to the IRS guidelines on per diem rates. For example, if Sara is traveling to a high-cost area, she may be allowed a higher deduction according to federal per diem rates, which can change annually.

Since the given answer, $400, aligns with established deductions for the scenario presented—potentially based on both the number of meals claimed and the specific rates for the area—this amount exemplifies how legitimate travel meal deductions are calculated within the guidelines provided by tax regulations.