Asked by Marlene Mejia on Jun 03, 2024
Verified
Terry,a CPA,flew from Dallas to New York to attend a conference.The conference lasted four days.Then she took three days of vacation to go sightseeing.Terry's expenses for the trip are as follows:
Airfare $525 Lodging (7 days ×$155)1,085 Meals (7 days ×$120)840 Taxi from airport to hotel and back 70\begin{array}{lr}\text { Airfare }&\$525\\\text { Lodging }(7 \text { days } \times \$ 155)&1,085\\\text { Meals }(7 \text { days } \times \$ 120)&840\\\text { Taxi from airport to hotel and back }&70\end{array} Airfare Lodging (7 days ×$155) Meals (7 days ×$120) Taxi from airport to hotel and back $5251,08584070
Calculate Terry's travel expense deduction.
Travel Expense Deduction
Tax deductions allowed for expenses incurred while traveling for business purposes.
Sightseeing
The activity of visiting places of interest or natural beauty, especially during travel or holidays.
- Evaluate the tax implications of travel expenses related to business activities.
Verified Answer
ZK
Zybrea KnightJun 05, 2024
Final Answer :
Terry's travel expense deduction is calculated as follows:
Airfare $525 Lodging (4 days ×$155 ) 620 Meals ( 4 days ×$120×50% ) 240 Taxi from airport to hotel and back 70 Total travel expense deduction $1,455\begin{array}{lr}\text { Airfare }&\$525\\\text { Lodging (4 days } \times \$ 155 \text { ) }&620\\\text { Meals ( } 4 \text { days } \times \$ 120 \times 50 \% \text { ) }&240\\\text { Taxi from airport to hotel and back }&70\\\text { Total travel expense deduction }&\$1,455\end{array} Airfare Lodging (4 days ×$155 ) Meals ( 4 days ×$120×50% ) Taxi from airport to hotel and back Total travel expense deduction $52562024070$1,455
Airfare $525 Lodging (4 days ×$155 ) 620 Meals ( 4 days ×$120×50% ) 240 Taxi from airport to hotel and back 70 Total travel expense deduction $1,455\begin{array}{lr}\text { Airfare }&\$525\\\text { Lodging (4 days } \times \$ 155 \text { ) }&620\\\text { Meals ( } 4 \text { days } \times \$ 120 \times 50 \% \text { ) }&240\\\text { Taxi from airport to hotel and back }&70\\\text { Total travel expense deduction }&\$1,455\end{array} Airfare Lodging (4 days ×$155 ) Meals ( 4 days ×$120×50% ) Taxi from airport to hotel and back Total travel expense deduction $52562024070$1,455
Learning Objectives
- Evaluate the tax implications of travel expenses related to business activities.