Question

Problem 3-9 (Algorithmic)
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 $ 600 Hotel charges while on business 475 Meals while on business 250 Car rental while on business 90 Hotel charges while on vacation 665 Meals while on vacation 275 Car rental while on vacation 180 Total $2,535

Calculate Joan's travel expense deduction for the trip, assuming the trip was made in 2018.
$

Answer 1

Calculation of Joan's Travel Expense Deduction :

Particulars	Amount ($)
Airfare to and from San Diego	600
Hotel charges while on business	475
Meals while on business (50% of 250)	125
Car rental while on business	90
Total Travel Expense Deduction	1,290

Note :- 1. Meal cost are deductible at 50%.

2. For car rental on business amount, you can deduct actual expenses or the standard mileage rate which is 0.545 for 2018. Since, nothing is mentioned about mileage rate, actual amount is considered.