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. Shelley documented her expenditures (described below). What amount can Shelley deduct?

Question

Quizplus · Accepted Answer

Self-employed individuals like Shelley can deduct their travel expenses if the travel is primarily for business purposes. In this case, Shelley attended a business conference in New Jersey, making her lodging and transportation expenses deductible. However, since she met with an old friend after the conference, her meals during that time are not deductible. Therefore, the total deductible amount is $2,740, which includes $1,100 for airfare, $800 for lodging, and $840 for meals during the conference. Choice A is incorrect because it overestimates the deductible amount. Choice C is incorrect because Shelley does not need to itemize her deductions to deduct her travel expenses. Choice D is incorrect because there is no requirement that Shelley attend a conference in Texas. Choice E is incorrect because only the meals during the personal portion of Shelley's travel are nondeductible.

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