During the year, Oscar travels from Raleigh to Moscow (Russia) on business.His time was spent as follows: 2 days travel (one day each way), 2 days business, and 2 days personal.His expenses for the trip were as follows (meals and lodging reflect only the business portion): Presuming no reimbursement, Oscar's deductible expenses are:

Question

During the year, Oscar travels from Raleigh to Moscow (Russia) on business.His time was spent as follows: 2 days travel (one day each way), 2 days business, and 2 days personal.His expenses for the trip were as follows (meals and lodging reflect only the business portion):  Presuming no reimbursement, Oscar's deductible expenses are:

Quizplus · Accepted Answer

Oscar's deductible expenses include meals and lodging during the 2 days of business travel. According to the IRS, the maximum allowable daily expense for meals and lodging for Moscow is $385. Therefore, the total allowable expense for the 2 days of business travel is $770. Additionally, Oscar can deduct the cost of his round-trip airfare, which he stated was $3,000. Therefore, his total deductible expenses are $3,000 + $770 = $3,770. Notably, the other expenses (personal and non-meal/lodging related) are not deductible. Thus, the correct answer is B) $5,500.

During the Year, Oscar Travels from Raleigh to Moscow (Russia)