Question

Geraldine is a self-employed consultant in St. Louis, Missouri. She traveled to San Francisco, California, in June and spent two weeks meeting with clients located in the area. She stayed an extra two days on vacation exploring the Bay Area. Which of the following is NOT a deductible business expense on Geraldine's return?

a. Airfare to and from San Francisco.
b. The cost of taking a taxi from her hotel to a client's place of business.
c. The meals and lodging for the extra two days.
d. Any of her meals or lodging, since she tacked on personal vacation days at the end of her trip.

Answer 1

c. The meals and lodging for the extra two days.

Step-by-step explanation:

All other expenses are directly related for the business purpose and there is no luxurious payment made. The extra two days stayed for vacation is the only non-business item, so only that portion of meal and loading expenses will not be treated as business expenses.