Question

During the year, John went from Milwaukee to Alaska on business. Preceding a five-day business meeting, he spent four days vacationing at the baech. Excluding the vacation costs, his expenses for the trip are:

Airfare 3200
Lodging 900
Meals 800
Entertainment 600
Presuming no reimbursement, what are the deductible expenses?

Answer 1

John's deductible expenses for his business trip to Alaska include airfare, lodging, meals, and entertainment, totaling $5,500. These do not include any vacation-related costs and would be deductible for tax purposes assuming they meet the tax authority's guidelines.

Step-by-step explanation:

The student is asking about deductible expenses related to a business trip. The deductibility of expenses for taxation is typically determined by their relation to the business activity. In this scenario, John's deductible expenses would be those incurred during the business part of his trip to Alaska, excluding costs that are personal in nature, such as the vacation.

According to the information provided, the total business-related expenses include airfare, lodging, meals, and entertainment, amounting to $3,200 for airfare, $900 for lodging, $800 for meals, and $600 for entertainment, which are presumably all related to the business aspects of his trip. Therefore, these expenses would be considered deductible for tax purposes, presuming they meet the guidelines laid out by the relevant tax authority.