On Monday, Harvey Leonard travels from Chicago to New York on a business trip. The trip lasts
Question:
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?
Step by Step Answer:
CCH Federal Taxation Basic Principles 2020
ISBN: 9780808051787
2020 Edition
Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback