Question

3) Brittany is attending a business conference in Hawaii for two nights and three days. She will extend the trip to last six nights and seven days for sight-seeing and frolicking in the surf. Further, she will have her mother accompany her on the trip as an award for raising such a great daughter. What portion, if any, of their airfare will be deductible? What portion of the hotel will be deductible?

Answer 1

As per IRS Guidelines issued,

An employee can deduct the full amount of their airline tickets fare incurred, even if it is first class.

But regarding the hotel stay expenses that are incurred, you can only write off only 50 percent of Unreimbursed cost of your stay at the local hotel.

However, the IRS is very strict about the use of the business deduction for travel costs. Only expenses that are incurred during the business portion of the trip are deductible. So, if you and your family decide to stay in town for an extra week after your business is concluded, you won't be able to deduct any of the expenses from those days.

In the given case,

Brittany can claim the deduction of hotel expenses incurred only for two nights and three days and the amount of expense incurred after that i.e., conclusion of business purpose is not allowed which is solely for the personal purpose of sight seeing and frolicking in the surf.

And the portion of air fare that is incurred for Brittany alone can be claimed as deduction and that amount incurred for her mother cannot be claimed as deduction.