On Thursday, Justin flies from Baltimore (where the office for his sole proprietorship is located) to Cadiz (Spain). He conducts business on Friday and Tuesday; vacations on Saturday, Sunday, and Monday (a legal holiday in Spain); and returns to Baltimore on Thursday. Justin was scheduled to return home on Wednesday, but all flights were canceled due to bad weather. As a result, he spent Wednesday watching floor shows at a local casino. For tax purposes, what portion of Justin’s trip is

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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LO.3 On Thursday, Justin flies from Baltimore (where the office for his sole proprietorship is located) to Cadiz (Spain). He conducts business on Friday and Tuesday; vacations on Saturday, Sunday, and Monday (a legal holiday in Spain); and returns to Baltimore on Thursday. Justin was scheduled to return home on Wednesday, but all flights were canceled due to bad weather. As a result, he spent Wednesday watching floor shows at a local casino.

For tax purposes, what portion of Justin’s trip is regarded as being for business?

Suppose Monday was not a legal holiday. Would this change your answer to part (a)? Explain.

Under either part (a) or (b), how much of Justin’s airfare qualifies as a deductible business expense?

 

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