Question

Allowing for the cutback adjustment (50% reduction for meals and entertainment), which of the following trips, if any, will qualify for the travel expense deduction?

a. Dr. Jones, a general dentist, attends a two-day seminar on developing a dental practice.
b. Dr. Brown, a surgeon, attends a two-day seminar on financial planning.
c. Paul, a romance language high school teacher, spends summer break in France, Portugal, and Spain improving his language skills.
d. Myrna went on a two-week vacation in Boston. While there, she visited her employer's home office to have lunch with former co-workers.
e. All of these.

Answer 1

Depending on specific IRS regulations, Dr. Jones and possibly Paul may qualify for the travel expense deduction. Dr. Jones' seminar is directly related to his dental practice, while Paul's language skills improvement could be linked to his teaching responsibilities. Dr. Brown and Myrna's trips are less likely to qualify due to less direct relevance or a primary personal nature.

Step-by-step explanation:

The question pertains to which trips qualify for the travel expense deduction considering a 50% cutback adjustment for meals and entertainment. The trips listed have different primary purposes and are thus subject to different IRS rules regarding deductibility.

• Dr. Jones, as a dentist attending a seminar directly related to his profession of developing a dental practice, is likely to qualify for the travel expense deduction, provided the seminar is primarily for business education.
• Dr. Brown's trip for a financial planning seminar may not qualify for the deduction, as financial planning is not directly related to his medical profession unless he can prove that the skills learned are directly relevant to running his medical practice.
• Paul, the romance language high school teacher, might qualify for the deduction only if improving his language skills can be directly related to his teaching job and responsibilities, and the trip can be substantiated as an educational expense.
• Myrna's trip sounds predominantly like a personal vacation, and a lunch with co-workers does not likely make the primary nature of the trip business-related; hence, she generally would not qualify for the travel expense deduction.

Therefore, depending on the specific details and how well they align with IRS regulations, Dr. Jones and possibly Paul have the best chance of qualifying for the travel expense deduction.