On Monday, Harvey Leonard travels from Chicago to New York on a business trip. The trip lasts

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On Monday, Harvey Leonard travels from Chicago to New York on a business trip.

The trip lasts five days. Three days of the trip are spent conducting business activities and two days are spent on personal sightseeing activities. Harvey incurs $550 in airfare costs in going to and returning from New York,

$50 a day in expenses for meals, and $100 a day for lodging while in New York.

a. What amount is deductible on Harvey's tax return for travel expenses related to the above activities? Assume Harvey is self-employed.

b, Assume Harvey is an employee and is reimbursed $700 by his employer for the trip. What amount is deductible on Harvey’s tax return for unreimbursed travel expenses related to the above activities?

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CCH Federal Taxation Basic Principles 2020

ISBN: 9780808051787

2020 Edition

Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback

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