Question

Brenda, a self-employed taxpayer, travels from Chicago to Barcelona (Spain) on business. She is gone 10 days (including 2 days of travel) during which time she spends 5 days conducting business and 3 days sightseeing. Her expenses are $1,500 (airfare), $200 per day (meals), and $400 per night (lodging). Because Brenda stayed with relatives while sightseeing, she only paid for 5 nights of lodging. Compute Brenda's deductions for the following expenses.\

Deduction for meals:

Answer 1

Ans: Brenda deduction for meals: Per day expense for meals*Number of business days * 50%

= $200 * 7 * 50%

= $700

As Only 50% of the meal expense is deductible and number of business day= 2 days travel + 5  days conducting business