Question

Problem 3-9 Travel Expenses (LO 3.4) Joan is a self-employed attorney in New York City. Joan took a trip to San Diego, CA, primarily for business, to consult with a client and take a short vacation. On the trip, Joan incurred the following expenses: Airfare to and from San Diego $ 478 Hotel charges while on business 340 Meals while on business 260 Car rental while on business (she drove 240 miles) 110 Hotel charges while on vacation 460 Meals while on vacation 290 Car rental while on vacation 180 Total $2,118 Calculate Joan's travel expense deduction for the trip, assuming the trip was made in 2017.

Answer 1

Travel expenses here means such expenses that are made in relation with the business. If any expenses are made for personal use or on vacation as in this question than they are not the Travel expenses that are deductible.

Secondly the car rental on business can be actual or at the rate that has been defined to be used. Since the rate has not being mentioned, we will take the actual car rental charges that are incurred during business trip.

The meals expenses are deductible but they are limited to maximum of 50%.

Airfare --------------------478

Hotel ----------------------340

Meals (260*50%) ------130

Car rental---------------- 110

Total 1058

Hence 1058 can be claimed as deduction