Question

Which of the following is a true statement about travel that has both business and personal aspects?

1) Transportation costs are always fully deductible.
2) Meals are not deductible for this type of travel.
3) Only half of the cost of meals and transportation is deductible.
4) The cost of lodging and incidental expenditures is limited to those incurred during the business portion of the travel.
5) None of the choices are correct.

Answer 1

Only the cost of lodging and incidental expenses related to the business portion of combined business and personal travel is deductible.

Step-by-step explanation:

The true statement about travel that has both business and personal aspects is: The cost of lodging and incidental expenditures is limited to those incurred during the business portion of the travel. When travel combines business with pleasure, the deductibility of expenses needs to be carefully determined. For transportation costs, you can deduct 100% if the trip is primarily for business and the personal portion didn't add to the expense. Meals are generally only 50% deductible and must be related to the business portion. Lodging and incidental expenses can only be deducted for the days when business activities are conducted.

The true statement about travel that has both business and personal aspects is that only half of the cost of meals and transportation is deductible.When it comes to travel expenses that have both business and personal aspects, the IRS allows taxpayers to deduct only 50% of the cost of meals and transportation.Therefore, option 3) - Only half of the cost of meals and transportation is deductible - is the correct answer.