Question

Susan Barnes is a self-employed consultant. She travels to Chicago on June 30th for business purposes. She attends business meeting on July 1st and 2nd. She takes personal time on the 3rd and 4th of July. On the 5th of July, she returns home. She incurs the following expenses: Flight charge: $480 Lodging: $200 per day for June 30th, July 1st, July 2nd, July 3rd, and July 4th. Meals: 6/30: $40; 7/1: $70; 7/2: $70; 7/3: $70; 7/4: $70; 7/5: $40 What is Susan total deductible business expense for travel

Answer 1

Susan Barnes

Total deductible business expenses:

= $1,300.

Step-by-step explanation:

a) Data and Calculations:

Dates for business meetings = July 1st and 2nd

Flight charge = $480

Lodging for 3 days = $600 ($200 *3)

Meals for 3 days:

6/30: $40;

7/1: $70;

7/2: $70

7/5: $40

Total for meals = $220

Total business expense = $1,300 ($480 + $600 + $220)

b) According to the IRS (Internal Revenue Service), business expenses have been defined as any expenses that are "helpful and appropriate" for a business. This definition excludes lodging and meal expenses incurred by Susan on July 3rd and July 4th, when she takes personal time.