Question

Sam operates a small chain of pizza outlets in Fort Collins, Colorado. In November of this year Sam decided to attend a two-day management training course. Sam could choose to attend the course in Denver or Los Angeles. Sam decided to attend the course in Los Angeles and take an eight-day vacation immediately after the course. Sam reported the following expenditures from the trip:

Course Tuition	$	2,900
Airfare		930
Hotel (10 nights)		2,500
Rental car (10 days)		770
Meals (10 days)		2,800

What amount of travel expenditures can Sam deduct?

Answer 1

Travel expenditure deducted by Sam	=	$       3,834
Workings:
Computation of amount of travel expenditure for deduction:
Course Tuition	=	$       2,900
Hotel ($2500 X 2/10)	=	$           500
Rental Car ($770 X 2/10)	=	$           154
Meals ($2800 X 50% X 2/10)	=	$           280
Total Deduction	=	$       3,834

Only 2 days expenditure is allowed for management trainning purpose, Air travel is non deductible and also meals deduction is restriced to 50% of the expenditure