Question

Assess the following travel expense:

On 11 November 2019, Marc travels to Chicago to attend the annual International engineering conference held by the International Engineers Association (IAE). The purpose of this conference is to update practising engineers on the latest engineering trends and developments in the industry.

            Marc believes that the conference will prove to be very useful for keeping him up-to-date on aspects of engineering that relate to his job. Marc personally paid all of the following costs relating to the conference.

            The costs of the overseas trip are detailed below (all amounts are expressed in Australian dollars):

                                                                                                                                                 $

• economy class airfare from Brisbane to Chicago and back                                3,494
• 3 nights accommodation at the Westin Hotel in Chicago                                      912
• IAE conference registration fee                                                                          1,560
• meals for three days while attending the conference                                             180
• dinner (consisting of a steak a glass of red wine purchased at Los Angeles

International Airport (which was a two-hour stopover en route to Chicago)            42

• taxi fares to and from airports                                                                                168
• ticket to the Chicago White Sox baseball game (who were playing

the Boston Red Sox)                                                                                             240

            The dates of Marc's flight was departing Brisbane on Saturday 9 November 2019 and arriving in Chicago on Sunday 10 November 2019, and then departing Chicago on Thursday 14 November 2019 and arriving back in Brisbane on Saturday 16 November 2020.

            Marc advises you that he has kept receipts for all of the above expenses and has kept the appropriate travel diary for taxation purposes.

Answer 1

As Marc himself paid all his expenses, he must maintain appropriate travel dairy to claim any deduction, as per provisions laid by the ATO.

In the given case, the expenses that Marc can claim are

1. airfare to and from Chicago ( which need not be separated from extended stay for watching baseball match as that incidental)

2.hotel accomodation related to conference.

3. conference registration fee.

4. meals and incidental costs like bus fare to and from airport and dinner at airport.

Expenses Marc cannot claim:

1.accomodations for extended stay beyond primary purpose.

2. meals and incidental costs on days beyond date of primary purpose.

3.match tickets.

Calculation of travel allowance claimable:

1. air fare to and from Chicago 3494

2. 1 night accommodations ( refer note ) 304

3. IAF conference cost 1560

4. 1 day meal for conference (refer note)    60

5. dinner at Los Angeles airport     42

6. taxi to and from airport 168

TOTAL AMOUNT    5628

NOTE:

IT IS ASSUMED THAT ADDITIONAL TWO DAYS STAY FOR 12TH AND 13TH WAS NOT FOR PRIMARY PURPOSE WHICH WAS ON 11TH. SO ACCOMMODATIONS AND MEALS EXPENSES NOT DEDUCTIBLE .

FURTHERMORE TICKETS FOR BASEBALL BALL MATCH NOT ALLOWABLE FOR DEDUCTIONS.