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.

Answer 1

Answer:

a. Airfare: $1,050 (70% × $1,500). Because neither the 7-day nor 25% exception applies, the air fare must be apportioned. Travel days count as business days. Thus, 7 days business/10 days total = 70%.  

b. Meals: $500 [($200 × 5 days) × 50% (cutback adjustment)].  

c. Lodging: $2,000 ($400 × 5 days). 21. (LO 5)

Answer 2

Answer:

Please see attachment

Explanation:

Please see attachment