During the current year, Harry, a self-employed accountant, travels from Kansas City to Miami for a seven-day business trip. While in Miami, Harry decides to stay for an additional 5 days of vacation. Harry pays $600 for airfare, $200 for meals, and $500 for lodging while on business. The cost of meals and lodging while on vacation was $300 and $500, respectively. How much may Harry deduct as travel expenses for the trip?
A)$600
B)$1,100
C)$1,200
D)$1,300
E)None of these

Question

Quizplus · Accepted Answer

To calculate travel expenses for tax purposes, we typically subtract the cost of personal/vacation expenses from the total travel expenses. In this case, Harry's total expenses are:
Airfare + Meals + Lodging on business + Meals on vacation + Lodging on vacation = $600 + $200 + $500 + $300 + $500 = $2,100
To determine the deductible travel expenses, we need to subtract the expenses that are purely personal in nature:
Meals on vacation + Lodging on vacation = $300 + $500 = $800
Therefore, Harry may deduct $2,100 - $800 = $1,300 as travel expenses. 
The correct answer is (C).

During the Current Year, Harry, a Self-Employed Accountant, Travels from Kansas