Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below. Melissa recently paid $595 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $380 fee to register for the conference, $295 per night for three nights lodging, $180 for meals, and $420 for cab fare. (Leave no answers blank. Enter zero if applicable.) (Round your answer to the nearest dollar amount.) c. Suppose that Melissa made the trip to San Francisco primarily to visit the national parks and only attended the business conference as an incidental benefit of being present on the coast at that time. What amount of the airfare can Melissa deduct as a business expense? amount $ 1,775

Explanation / Answer

The answer is NIL. Airfare expenses can't be deducted as business expense in this case.

Explaination: As per federal tax laws (IRS), the travelling expenses can be claimed as deduction (as business expense) only when the trip is primarily related to your business.If the tour/trip is primarily personal in nature, none of your travelling expenses are deductible.This is true even though the taxpayer (assessee) engaged in some business activities.

Whether a trip is primary related to your business or not depends on facts and circumstances of each case.

Here in this case, it is clearly stated that melissa's primary reason for the tour is to visit national parks (personal reasons). Therefore melissa can't deduct airfare expenses as business expenses.

Hope this is useful and thank you!!!!!

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.