Shelley is self-employed in Texas and recently attended a two-day business conference in New Jersey.After Shelley attended the conference, she had dinner with an old friend who lived nearby.Shelly documented her expenditures (described below).What amount can Shelley deduct? $\begin{array}{llcc}
\text {Airfare to New Jersey } & \$2,000\
\text {Meals at the conference } &220\
\text { Meal with ar old friend } &120\
\text {Lodgirg ir New Jersey } &450\
\text { Reratal car } &180\

\end{array}$

A)$2,850.
B)$2,740.
C)$1,850 if Shelley itemizes the deductions.
D)All of these expenses are deductible but only if Shelley attends a conference in Texas.
E)None of the expenses are deductible because Shelly visited her friend.

Question

Shelley is self-employed in Texas and recently attended a two-day business conference in New Jersey.After Shelley attended the conference, she had dinner with an old friend who lived nearby.Shelly documented her expenditures (described below).What amount can Shelley deduct? $\begin{array}{llcc}
  \text {Airfare to New Jersey  } & \$2,000\
 \text {Meals at the conference  } &220\
 \text { Meal with ar old friend } &120\
 \text {Lodgirg ir New Jersey  } &450\
 \text { Reratal car } &180\

\end{array}$

A)$2,850.
B)$2,740.
C)$1,850 if Shelley itemizes the deductions.
D)All of these expenses are deductible but only if Shelley attends a conference in Texas.
E)None of the expenses are deductible because Shelly visited her friend.

Quizplus · Accepted Answer

Shelley can deduct all of the expenses listed except for the meal with her old friend, as that is not considered a business expense. The airfare, meals at the conference, lodging, and car rental are all deductible as they are necessary expenses related to Shelley's self-employment. However, the total amount deductible is $2,740, not $2,850, as the cost of airfare is not included in the total deductible expenses.

Shelley Is Self-Employed in Texas and Recently Attended a Two-Day