How should he treat the expenses related to this trip

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Problem - Joe is a self-employed information technology consultant from San Francisco, CA. He takes a week-long trip to Chicago primarily for business. He takes two personal days to go to museums and see the sights of Chicago. How should he treat the expenses related to this trip?

a. One hundred percent of the trip should be deducted as a business expense since the trip was primarily for business.

b. Fifty percent of the trip should be deducted as a business expense since the IRS limits such business expenses to 50 percent of the actual cost.

c. The cost of all of the airfare and the business days should be deducted, while the cost of the personal days are not deductible.

d. None of the expenses are deductible since there was an element of personal enjoyment in the trip.

Reference no: EM132674530

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