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 is scheduled to return home on Wednesday, but all flights were canceled due to bad weather. As a result, he spends Wednesday watching floor shows at a local casino. Days where travel is attempted/cancelled is counted as a travel day under tax law. Justin is self-employed.

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

0%50%75%100%

b. Suppose Monday was not a legal holiday. Would this change your answer about what percentage of Justin's trip would be regarded as business?

Yes, because this causes Saturday, Sunday, and Monday to be nonbusiness days.No, because this causes Saturday and Sunday to be business days.

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

Under part (a),

25% of the airfare would be deductible50% of the airfare would be deductible80% of the airfare would be deductibleall of the airfare would be deductiblenone of the airfare would be deductible

.

Under part (b),

25% of the airfare would be deductible50% of the airfare would be deductible80% of the airfare would be deductibleall of the airfare would be deductiblenone of the airfare would be deductible

.