Deductions for trip expenses


Problem: During the year, Rose took a trip from Chicago to Madrid. She was away from home for 20 days. She spent five days vacationing and fifteen days on business (including the three travel days). Her expenses are as follows:

Air fare $2,000
Lodging (20 days X $80) 1,600
Meals (20 days X $120) 2,400
Valet service (cleaning of laundry) 160

Rose's deduction is:

a. $3,760.
b. $4,800.
c. $4,960.
d. $6,160.
e. None of the above.

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Accounting Basics: Deductions for trip expenses
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