Barry is a self-employed attorney who travels to New York on a business trip during 2015. Barry's expenses were as follows: How much may Barry deduct as travel expenses for the trip?

Question

Quizplus · Accepted Answer

Per IRS regulations, a self-employed individual cannot deduct any travel expenses if the trip is considered entirely for personal purposes. However, if the trip is primarily for business purposes, the individual may deduct travel expenses such as transportation, lodging, and meals.

In this case, Barry is a self-employed attorney who traveled to New York on a business trip during 2015. The expenses he incurred were $800 for airfare, $150 for lodging, and $50 for meals. Since the trip was for business purposes, and the expenses were directly related to the business trip, Barry may deduct the entire $1,000 as travel expenses. Therefore, the best choice is C.

Barry Is a Self-Employed Attorney Who Travels to New York