Answer the following statements true (T) or false (F)

Question

1. Tessa has planned a five-day trip to Miami with her husband. Before leaving, one of Tessa's partners asks her to take a morning meeting with a client while she is there. Tessa can now deduct the cost of the airfare for the trip.
2. Travel expenses related to foreign conventions are disallowed unless the meeting is directly related to the taxpayer's business, and it is reasonable for the meeting to be held outside of North America.
3. A three-day investment conference is held in Las Vegas. Dr. Singh, a dentist, travels from Ohio to attend to improve his taxable investment portfolio performance. Ms. Gondin, a financial planner, travels from Seattle to attend the same conference to improve her skills in managing her clients' investment portfolios. The same standards of deductibility will apply to both attendees.
4. Commuting to and from a job location is a deductible expense.
5. Rui, the sole proprietor of a CPA firm, is responsible for a large client base. She often drives to meetings at two different clients' offices in a single day. Rui can deduct the transportation costs of driving to the various client meetings.

Answer 1

1. FALSE
The trip must be primarily for business purposes for the transportation to be deductible.
2. TRUE
More stringent criteria apply to foreign travel.
3. FALSE
None of Dr. Singh's travel will be deductible as the expenses are related to investment-related activities rather than directly connected with a trade or business.
4. FALSE
The costs of commuting between home and the job location are considered a personal expense.
5. TRUE
Self-employed individuals can deduct qualifying transportation expense.