Bob took a business trip from Chicago to London. He was away 12 days of which he spent six days on business (including two travel days) and six days vacationing. His expenses are as follows: Airfare$1,400Lodging (12 days × $125) 1,500Meals (12 days × $100) 1,200Calculate Bob's travel expense deduction.
What will be an ideal response?
Bob's airfare must be allocated 50% to business use and 50% to personal use because it is foreign business travel. Bob's travel expense deduction is calculated as follows:
| Air fare ($1,400 × 50%) | $ | 700 |
| Lodging (6 days × $125) | 750 | |
| Meals (6 days × $100 × 50%) | 300 | |
| Total travel expense deduction | $ | 1,750 |
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