Julie travels to Mobile to meet with a client.While in Mobile,she spends 4 days meeting with the client and one-day sightseeing.Her husband Harry goes with her and spends all 5 days sightseeing and playing golf.The cost of the trip is as follows:

If Julie is self-employed,what is the amount of the deduction she may claim for the trip?

Question

Julie travels to Mobile to meet with a client.While in Mobile,she spends 4 days meeting with the client and one-day sightseeing.Her husband Harry goes with her and spends all 5 days sightseeing and playing golf.The cost of the trip is as follows:
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If Julie is self-employed,what is the amount of the deduction she may claim for the trip?

Quizplus · Accepted Answer

Julie can only deduct expenses related to her business meetings with the client, not the sightseeing activities. Therefore, she can deduct the cost of her transportation to and from Mobile, as well as the cost of her lodging for the four days she spent meeting with the client. Harry's expenses cannot be deducted as they were not for business purposes.

The breakdown of Julie's deductible expenses is as follows:

- Airfare: $600
- Hotel for four nights: 4 x $125 = $500
- Meals for four days: 4 x $50 = $200

Total deductible expenses = $600 + $500 + $200 = $1,300

However, Julie also incurred $30 in expenses for the one day of sightseeing. This amount is not deductible, so it must be subtracted from the total deductible expenses:

$1,300 - $30 = $1,270

Therefore, Julie can claim a deduction of $1,270 for the trip. The correct answer is B) $1,270.

Julie Travels to Mobile to Meet with a Client