On Thursday, Justin flies from Baltimore (his home office) to Cadiz (Spain). He conducts business on Friday

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On Thursday, Justin flies from Baltimore (his home office) 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. Therefore, he spent Wednesday watching floor shows at a local casino.
a. For tax purposes, what portion of Justin's trip is regarded as being for business?
b. Suppose Monday had not been a legal holiday. Would this change your answer in part (a)? Explain.
c. Under either (a) or (b), how much of Justin's airfare qualifies as a deductible business expense?
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South Western Federal Taxation Individual Income Taxes 2017

ISBN: 9781305873988

40th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen

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