Question
Elise is self-employed as an interior designer. She had significant travel expenses within the United States this year to acquire new clients. Which of the following is NOT a deductible travel expense for Elise?
Airfare for spouse and child. Neither are employees and neither have a bona fide business purpose for traveling with Elise.
Hotel stays during a business trip to meet new clients.
Taxi fares paid on the trip to meet new clients.
Tips paid to hotel bellhops while on a business trip to meet new clients.
Airfare for spouse and child. Neither are employees and neither have a bona fide business purpose for traveling with Elise.
Hotel stays during a business trip to meet new clients.
Taxi fares paid on the trip to meet new clients.
Tips paid to hotel bellhops while on a business trip to meet new clients.
Answers
GPT-4o mini
The expense that is NOT deductible for Elise is:
**Airfare for spouse and child. Neither are employees and neither have a bona fide business purpose for traveling with Elise.**
In general, for travel expenses to be deductible, they must be directly related to the business purpose. Since her spouse and child do not have a business purpose or are not employees, their airfare would not qualify as a deductible expense. The other expenses listed (hotel stays, taxi fares, and tips) are directly related to Elise’s business activities and would typically be deductible.
**Airfare for spouse and child. Neither are employees and neither have a bona fide business purpose for traveling with Elise.**
In general, for travel expenses to be deductible, they must be directly related to the business purpose. Since her spouse and child do not have a business purpose or are not employees, their airfare would not qualify as a deductible expense. The other expenses listed (hotel stays, taxi fares, and tips) are directly related to Elise’s business activities and would typically be deductible.