Question & Answer: Melissa recently paid $800 for round-trip airfare to San Francisco to att…..

Melissa recently paid $800 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $510 fee to register for the conference, $400 per night for three night’s lodging, $220 for meals, and $445 for cab fare. (Leave no answers blank. Enter zero if applicable.)
a. What amount of the travel costs can Melissa deduct as business expenses? (Round your answer to the nearest dollar amount.)

b. Suppose that while Melissa was on the coast, she also spent two days sightseeing the national parks in the area. To do the sightseeing, she paid $1,670 for transportation, $800 for lodging, and $285 for meals during this part of her trip, which she considers personal in nature. What amount of the travel costs can Melissa deduct as business expenses? (Round your answer to the nearest dollar amount.)

Expert Answer

 

a
Amount deductible as business expenses = 800+510+1200+(220*50%)+445= 3065
b
None of the costs of site seeing is deductible. However, because her primary purpose for the trip appears to be business $3065 is deductible
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