Individual Income Taxes
Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
Question
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Chapter 9, Problem 20CE

a.

To determine

Compute Person B’s deduction for airfare.

b.

To determine

Compute Person B’s deduction for meals.

c.

To determine

Compute Person B’s deduction for airfare.

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Jessie has a schedule C business. She needed to visit a client in New York. She only needed to be in New York for 1 day to conduct business with her client but she decided to stay an extra 3 days to do some sightseeing. Jessie incurred $800 for airfare, $1,200 for hotel stay and $600 for meals. All of these amounts are reasonable. How much, if any, of the expenses that Jessie incurred will be deductible on her Federal income tax return? a) $375 b) $575 c) $2,600 d) $2,000 e) $0
In the current year, Joselyn travels from Houston, Texas to Miami, Florida primarily for business. She spends three days conducting business and two days sightseeing (the day before and the day after business). Her plane and taxi fare amounts to $890. Her meals (all provided in restaurants) amount to $160 per day, and lodging and incidental expenses are $275 per day. She is self-employed. Her deduction for these expenses is as follows: Plane and taxi expenses: Meals:  Lodging and incidental expenses
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Chapter 9 Solutions

Individual Income Taxes

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