Question

If the purpose of the trip is primarily personal, then none of the air fare is deductible and only those direct costs associated with the conference ($1,400) can be deducted (the registration, lodging, 50 percent of the meals, and cab fare). True or False?

Answer 1

If the purpose of the trip is primarily personal, only the direct costs associated with the conference can be deducted.

Step-by-step explanation:

If the purpose of the trip is primarily personal, then none of the air fare is deductible. Only the direct costs associated with the conference, such as the registration, lodging, 50 percent of the meals, and cab fare, can be deducted. This means that the $1,400 cost of the conference can be deducted from your taxes.

For example, if you spent $2,000 on airfare for a trip and $1,400 on conference-related expenses, but the primary purpose of the trip was personal, you would only be able to deduct the $1,400 conference costs from your taxes.

Therefore, the statement is true.