Question

Travel Expenses, Meals And Entertainment, Educational Expenses (LO 3.4,3.5,3.6 ) Bob is a self-employed lawyer and is required to take a week of continuing legal education every year to maintain his license. This year he paid $1,400 in course fees for his continuing legal education in a different clty. He also paid $500 for airfare and a hotel room and paid $300 for meals, all of which were provided by the hotel's restaurant, Bob also purchased a $10 bag of snacks from a newsstand while waiting for his plane in the alpport because he missed funch. What is the total amount he can deduct on his Schedule c related to these expenses?

Answer 1

Bob can deduct a total of $2,050 on his Schedule C for his continuing legal education trip including the full amounts for educational fees and travel, and 50% of his meal expenses at the hotel.

Step-by-step explanation:

Travel expenses, meals and entertainment, educational expenses—these are all considerations for Bob, a self-employed lawyer who is maintaining his license with continuing legal education. To calculate the total amount Bob can deduct on his Schedule C, we should consider the IRS guidelines on deductible business expenses. Generally, travel expenses related to business such as airfare and lodging are fully deductible. Educational expenses that maintain or improve required professional skills, like Bob's continuing legal education course fees, are also fully deductible. When it comes to meals, only 50% of the cost is deductible for business-related meal expenses. Thus, if Bob paid $300 for meals, he can deduct 50% of that amount.

Calculating Bob's total deductible amount yields:

1. Continuing legal education fees: $1,400
2. Airfare and hotel room: $500
3. 50% of meals ($300 × 50%): $150

$2,050. The $10 bag of snacks would not be deductible as it is considered to be a non-deductible incidental expense.