Question

Toni is a self-employed consultant and while traveling spends $120 on meals and $200 on transportation and lodging.  What is the amount of Ton’s deduction for these expenditures?

Answer 1

100% of amount spent on transportation and lodging is allowed, provided travel must last longer than an ordinary workday, require you to get sleep or rest and take place away from the general area of your tax home.

50% of amount spent on meals is allowed, provided the taxpayer has a receipt for the same.

Amount allowed as deduction for transportation and lodging= 100% of $200= $200

Amount allowed as deduction for meals= 50%= $60

Total deduction allowed= $260.

This is under the assumption that all the conditions required to claim deduction are satisfied.

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