Question

Your client, Barney Green, and his wife, Edith, attended a two-day conference in Maui related to Barry's work in architecture as a sole proprietor. The Greens went to Hawaii several days early so they could adjust to the jet lag and be ready for the conference. The $8,000 cost of the trip included the following expenses:

First-class airfare $2,500

Hotel (four days) $2,000

Conference fee $1,000 per person

Meals $1,500.

What expenses (if any) can Barney deduct for his business?

Answer 1

Answer:

An employee can deduct everything of their aircraft tickets fare incurred, regardless of whether it is first class.And the segment of air fare that is acquired for Barney alone can be guaranteed as deduction and that sum incurred for her spouse can't be asserted as deduction.

Barney can guarantee the deduction of lodging expenses incurred distinctly for two days and the sum of cost acquired after that i.e., conclusion of business purpose isn't permitted which is exclusively for the personal reason.

Suppers are reasonable upto half %,Conference expense can be deducted completely .

Calculation of expenses (if any) can Barney deduct for his business :

Particulars	Amount	Amount
First class air fare		$ 2,500
Hotel / lodging exp	= $ 2,000 * 2 days = $ 4,000	$ 4,000
Conference exp	= $ 1,000 * 2 = $ 2,000	$ 2,000
Meals	= $ 1,500 * 50% = $ 1,500*50/100 = $ 750	$ 750
Total	$ 2,500+$ 4,000+$ 2,000+$ 750 = $ 9,250	$ 9,250