Problem 9-27 (LO. 3) Monica, a self-employed taxpayer, travels from her office in Boston to Lisbon, Portugal, on business. Her absence of 13 days was spent as follows: Thursday Depart for and arrive in Lisbon Friday Business transacted Saturday and Sunday Vacationing Monday through Friday Business transacted Saturday and Sunday Vacationing Monday Business transacted Tuesday Depart Lisbon and return to office in Boston a. For tax purposes, how many days has Monica spent on business? 13 days b. What difference does it make? test or the less-than-25 v% test, then her transportation costs do not have to If Monica's trip satisfies the seven-days be allocated between business and personal. C. Could Monica have spent more time than she did vacationing on the trip without loss of existing tax benefits? Monica cannot satisfy the seven-days test. Under the less-than-25% test, she could have vacationed for 3 more days assuming that the days did not interfere with the preceding and succeeding days provision. Problem 9-24 (Algorithmic) (LO. 3,5) In June 2021, Enrique and Denisse Espinosa traveled to Denver to attend a three-day conference sponsored by the American Society of Implant Dentistry. Denisse, a self-employed practicing oral surgeon, participated in scheduled technical sessions dealing with the latest developments in surgical procedures. On two days, Enrique attended group meetings where various aspects of family tax planning were discussed. On the other day, he went sightseeing. Enrique does not work for his wife, but he prepares their tax returns and handles the family investments. Expenses incurred in connection with the conference are summarized below. Airfare (two tickets) $2,800 Lodging (single and double occupancy are the same rate-$245 each day) 735 Meals at local restaurants ($330 x 3 days)* 990 Conference registration fee (includes $120 for Family Tax Planning sessions) 740 Car rental 315 *Split equally between Enrique and Denisse Espinosa. If an amount is zero, enter "O". If required, round your interim calculations to nearest dollar. How much, if any, of these expenses can the Espinosas deduct? Enrique's activities do not constitute a trade or business. Therefore, he can deduct of his expenses. Denisse's deductible expenses are: Airfare (one ticket) Lodging Meals Registration fee Car rental Total Problem 9-25 (Algorithmic) (LO. 1, 3, 5) Kim works for a clothing manufacturer as a dress designer. During 2021, she travels to New York City to attend five days of fashion shows and then spends three days sightseeing. Her expenses are as follows: Airfare $2,050 Lodging (8 nights) 2,665 Meals at local restaurants (8 days) 2,460 Airport transportation 100 Assume lodging/meals are the same amount for the business and personal portion of the trip ($333 per day for lodging and $308 per day for meals) If an amount is zero, enter "0". If required, round all interim calculations to nearest dollar. a. Determine Kim's business expenses, presuming no reimbursement. Airfare 2,050 Lodging 1,666 Meals Transportation Total What amount may she deduct on her tax return? $ b. Would the tax treatment of Kim's deduction differ if she was an independent contractor? The deductible expenses would be $ and the expenses would be classified as
