How Can Sylvia Write Off For Tax Purpose?

Fact: Sylvia was on sabbatical for an academic year taking courses to expand her knowledge of business and help her conduct research at National Taiwan University. During that year, Sylvia had a trip around Taiwan Island on weekends and during the three-week winter vacation when she had a lecture to attend one time in Tainan. In addition, Sylvia recorded all expenses and saved receipts.
Issue: Whether a taxpayer who travels abroad can deduct the travel expenses incurred?
How much of the deductible travel expense can Sylvia write off for tax purpose?
Conclusion: Sylvia can deduct the travel expenses incurred for business purpose while she was in Taiwan. She cannot deduct the expense incurred for personal vacation on weekends and during winter break.
Sylvia can deduct full amount of lodging and travel expenses along with 50% of meal expenses. She can also deduct travel expenses allocable to business activity while she was present in a lecture in Tainan. …show more content…
Taxpayers can only deduct those reasonable and necessary expenses incurred for business purpose and directly related to the business when the taxpayer travels away from home for business (Code Sec. 162 (a) (2)). However, if the trip is for personal purpose or other than business purpose, the travel expenses incurred during the trip are personal and living expense; taxpayer cannot deduct such travel expenses for tax purpose (Regulation §1.162-2(a)). In this case, the purpose of Sylvia taking courses in Taiwan is to expand her knowledge in teaching profession and help her conduct research as a business professor in the university. Therefore, she can deduct those reasonable and necessary expenses incurred for study and research purpose in National Taiwan