Richard, a self-employed business consultant, traveled from New Orleans to New York for both business and vacation. He spent 4 days conducting business and some days vacationing. He incurred the following expenses:Airfare$460Lodging-per day175Meals-per day100Business Entertainment800What is his deduction under the following two circumstances?a.He spends three days on vacation, in addition to the business days.b.He spends six days on vacation, in addition to the business days.
What will be an ideal response?
| ? | a. Primarily Business | b. Primarily Personal |
| Airfare | $460 | $ 0 |
| Lodging $175 × 4 days | 700 | 700 |
| Meals $100 × 4 × 50% | 200 | 200 |
| Business Entertainment | 0 | 0 |
| Total, before AGI floor | $1,360 | $ 900 |
Note that the plane fare is not deductible because he spent more time on vacation than on business. Business entertainment is not deductible.
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