Minsu Deductions Essay

965 Words Sep 28th, 2013 4 Pages
Tax Memo to the File
May 8, 2013
From: Earnest J. Lumpkin III
Subject: Minsu Deductions
Facts: For the past two years, Minsu, a Korean American, has worked as a high school physical education teacher. He is also a body-builder and a part-time graduate student in educational technology at State University. In preparing for a master’s thesis he has decided to participate in Arnold’s World Body-building training program and analyzing advanced technology used to help students absorb physical education. Arnold’s training program has a regular faculty, curriculum, an enrolled body of students, and advanced technology in its gym equipment.
Minsu earned $4,000 during the fall 20X5 as a body-builder by coming in second in the state
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On weekends and during the three week winter break Sylvia went sight-seeing by herself around the island, but one time gave a lecture in Tainan, Taiwan. Sylvia has documented her expenses and saved her receipts.

Legal Issue:
Sylvia wants to determine how much can he deduct for foreign travel?

List of Relevant Authorities
The main objective of this Update is to clarify what are Foreign Travel Dedcutions? When documenting your business trips outside the United States, your trip will fall into one of three categories: Travel Entirely for Business, Travel Primarily for Business, and Travel Primarily for Vacation. The factors which determine which category your trip falls into are: Number of business days versus total days away. If your goal is to have all your travel expenses be deductible, you will need to keep a daily log or diary of business activities to satisfy the who, what, where, when and why of IRC 274. For foreign travel, not only do you have to satisfy the business time requirement above, but you will have to satisfy additional hurdles IF:
1) Your total foreign travel days are more than 7 consecutive days
AND
2) Your foreign travel "non-business days" are 25% or more of your total foreign travel days.

Conclusion: The code IRC 274 states that Sylvia can deduct some of her foreign travel based on certain parameters. The good thing is Sylvia has

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