Question

Shelley is self-employed in Texas and recently attended a two-day business conference in New Jersey. After Shelley attended the conference, she had dinner with an old friend who lived nearby. Shelly documented her expenditures (described below). What amount can Shelley deduct if she is not reimbursed by her employer?

Airfare to New Jersey $ 2,180
Meals 238
Lodging in New Jersey 432
Rental car 198


(A) $3,048
(B) $2,929
(C) None of the expenses are deductible by an employee.
(D) $1,958 if Shelley's AGI is $50,000
(E) All of these expenses are deductible if Shelley attends a conference in Texas.

Answer 1

amount can Shelley deduct if she is not reimbursed by her employer is $2,929

correct option is (B) $2,929

Step-by-step explanation:

given data

Airfare to New Jersey = $2,180

Meals = $238

Lodging in New Jersey = $432

Rental car = $ 198

to find out

amount can Shelley deduct if she is not reimbursed by her employer

solution

we know that here Only half of the meals cost are deductible and others are fully deductible

so Deductible cost is here

1. Airfare to New Jersey full Deductible = $2,180
2. Meals half deductible = $119
3. Logging in New jersey full Deductible = $432
4. Rental car full Deductible = $198

total = $2929

so correct option is (B) $2,929