Question
1.Brenda, a self-employed taxpayer, travels from Chicago to Barcelona (Spain) on business. She is gone 10 days (including 2 days of travel) during which time
1.Brenda, a self-employed taxpayer, travels from Chicago to Barcelona (Spain) on business. She is gone 10 days (including 2 days of travel) during which time she spends 5 days conducting business and 3 days sightseeing. Her expenses are $2,040 (airfare), $270 per day (meals), and $435 per night (lodging). Because Brenda stayed with relatives while sightseeing, she only paid for 5 nights of lodging. Compute Brenda's deductions for the following:
If required, round your answers to the nearest dollar.
a. Deduction for airfare:$?
b. Deduction for meals:?
c. Deduction for lodging:?
2. In 2020, the CEO of Crimson, Inc., entertains 16 clients at a skybox in Memorial Stadium for a single athletic event during the year. Substantive business discussions occurred at various times during the event. The box cost $8,050 per event and seats 18 people. (The cost of a regular, nonluxury box seat at Memorial ranges from $95 to $190.) Refreshments served during the event cost $1,920 (and were separately itemized on the bill Crimson received).
How much of these costs may Crimson deduct? and not 0.
3. Cindy, who is self-employed, maintains an office in her home that comprises 18% (250 square feet) of total floor space. Gross income for her business is $47,900, and her residence expenses are as follows:
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If required, round your final answer to the nearest dollar.
a. What is Cindy's office in the home deduction based on the regular method? b. What is Cindy's office in the home deduction based on the simplified method?
(note: Employees and self-employed individuals are not allowed a deduction for office in the home expenses unless a portion of the residence is used exclusively on a regular basis under certain circumstances)
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