Question

On Thursday, Justin flies from Baltimore (his home office) 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 was scheduled to return home on Wednesday, but all flights were canceled due to bad weather. Therefore, he spent Wednesday watching floor shows at a local casino.

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

2. Suppose Monday was not a legal holiday. Would this change your answer to part (a)? Explain.

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

Answer 1

solution :

1)If you have been living in Spain for a half year (183 days) or a greater amount of the timetable year (not really continuously) or you have your primary 'essential' interests in Spain (for instance, your family or business is in Spain), at that point you are classed as a Spanish inhabitant for expense purposes, according to spain Tax Rules.

Here Justin is having Vitail intrigue, for example business in spain , so all the days he spent in spain working together or generally makes him at risk to make good on regulatory obligation.

Despite the fact that two days are considered for working together however the private status is resolved dependent on the person's complete physical remain in Spain amid the significant expense year.

2) Yes the all out days of his stay for business reason would have expanded however it would have no impact on his expense status.

3) Justin airfare and business related costs for Thursday, Friday& Tuesday , likewise wednesday will be considered because of awful climate.

However, get-away days won't be considered.