Abigail works for a clothing manufacturer as a dress designer. She travels to New York City to attend three days of fashion shows and then spends four days sightseeing. Her expenses are as follows:
|
Airfare |
$1,600 |
|
Lodging (6 nights) |
2,400 |
|
Meals (6 days) |
1,600 |
|
Airport transportation |
120 |
[Assume that lodging/meals are the same amount for the business and personal portion of the trip (e.g., $200 per day for meals).]
a. Presuming no reimbursement, how much can Abigail deduct as to the trip?
b. Would the tax treatment of Abigail’s deduction differ if she was an independent contractor (rather than an employee)? Explain.