Question

Eileen lives and works in Mobile. She travels to Rome for an eight-day business meeting, after which she spends two days touring Italy. All of Eileen's airfare is deductible.

a. True
b. False

Answer 1

Eileen cannot deduct all of her airfare for the entire trip; only the airfare for the business portion is deductible.

Step-by-step explanation:

The statement is False. Eileen can only deduct the airfare for the business portion of her trip, which is the eight-day business meeting in Rome. Any personal travel, such as the two days she spends touring Italy, is not deductible. The key factor in determining deductibility is whether the expenses are directly related to the taxpayer's trade or business.