Question

During the year, Sarah Vaughan (a self-employed dog therapist) went from Kentucky to Venice, Italy on business. She spent four days on business, two days on travel, and four days on vacation. Sarah Vaughan ’s deductible expenses are?

Airfare $3,000 Lodging $1000 (for business days) Meals $500 (for business days) Entertainment (concert tickets for clients and herself) $400

Answer 1

Ans: As per rule, 50% is deductible for Meals and entertainment

Deductible expenses= 50% for {500+400}

=> 450

and As per Rule, full lodging expenses are allowed i.e. 1,000
And Given Total 10 days for Travelling in airplane out of which 4 are dedicated to business, two days on travel and four days on vacation i.e. and as per Rule, all airfare would have been deductible.  If the business travel would have been for at least 7 days,

here 6 days will be counted as for business i.e. 6 out of 10 will be 60% and hence 60% will be deductible i.e. 60% for $3,000

=> 1,800

Total Deductible Expenses= 1,800+450+1,000

=> 3,250