Mikey is a self-employed computer game software designer. He takes a week-long trip to Maui, primarily for business. He takes 2 personal days at the beach. How should he treat the expenses related to this trip?
A)None of the expenses are deductible since there was an element of personal enjoyment in the trip.
B)100 percent of the trip should be deducted as a business expense since the trip was primarily for business.
C)50 percent of the trip should be deducted as a business expense.
D)The cost of all of the airfare and the expenses related to the business days should be deducted, while the expenses related to the personal days are not deductible.

Question

Quizplus · Accepted Answer

For tax purposes, when a trip is primarily for business but includes personal days, the cost of the trip to and from the destination (such as airfare) is fully deductible. However, expenses directly related to personal days (such as lodging or meals on those days) are not deductible. Therefore, Mikey can deduct the cost of the airfare and the business-related expenses, but not the expenses incurred on his personal days.

Mikey Is a Self-Employed Computer Game Software Designer