On Thursday, Justin flies from Baltimore (where the office for his sole proprietorship is located) to Cadiz (Spain). He conducts business on Friday and Tuesday; vacations on Saturday, Sunday, and Monday (a legal holiday in Spain); and returns to Baltimore on Thursday. Justin was scheduled to return home on Wednesday, but all flights were canceled due to bad weather. As a result, he spent Wednesday watching floor shows at a local casino.

a. For tax purposes, what portion of Justin’s trip is regarded as being for business?

b. Suppose Monday was not a legal holiday. Would this change your answer in (a)? Explain.

c. Under either (a) or (b), how much of Justin’s airfare qualifies as a deductible business expense?

The whole trip is considered a business trip because Justin started working before the weekend and continued to work after the holiday was over. He is not responsible for bad weather conditions.

b. Suppose Monday was not a legal holiday. Would this change your answer in (a)? Explain.

Yes, it would make a difference since a legal holiday counts as a labor day, so Justin legally worked immediately after the weekend, but if Monday wasn't a holiday and he got back to work on Tuesday, then he couldn't consider Saturday, Sunday nor Monday as business days.

c. Under either (a) or (b), how much of Justin’s airfare qualifies as a deductible business expense?

the airfare is 100% deductible under any scenario

topeadeniran2 topeadeniran2 · Answer 2 · 2021-11-24T13:11:45+01:00

The portion of Justin’s trip that is regarded as being for business is the whole trip.

It should be noted that the whole trip is considered a business trip due to the fact that Justin started working before the weekend and continued to work after the holiday was over.

If Monday was not a legal holiday, it'll make a difference since a legal holiday counts as a labor day, so Justin legally worked immediately after the weekend.

Under either (a) or (b), the amount of Justin’s airfare that qualifies as a deductible business expense is the whole amount which is 100% of the amount.

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