Question

Gary, a self-employed CPA, traveled to Dallas for five days on vacation, and while there spent another three days conducting business. Gary's plane fare for the trip was $650; meals cost $180 per day; lodging cost $350 per day; and a rental car cost $100 per day that was used for all eight days. Gary may deduct (disregard CARES Act, SECURE Act, and Stimulus Act):

Answer 1

Gary, CPA

Gary may deduct (disregard CARES Act, SECURE Act, and Stimulus Act):

$2,134.

Step-by-step explanation:

a) Data and Calculations:

Total Expenses:

Business use of trip = $244 ($650 * 3/8)

Trip plane fare = $650

Meals = 1,440 ($180 * 8)

Lodging = 2,800 ($350 * 8)

Rental car = 800 ($100 * 8)

Total expenses $5,690

3 days of expenses = $2,134 ($5,690 * 3/8)

b) Since Gary conducted some business for 3 days during his vacation, he is allowed to allocate his travel expenses between personal and business. Only the business portion of the expenses will be allowed by the IRS as business expenses.