- 5 - Income Tax Regs. If a trip is primarily personal in nature, expenses are not deductible even if the taxpayer engaged in some business activities at the destination. Id. Whether travel is related primarily to the taxpayer's trade or business or is primarily personal is a question of fact. Sec. 1.162-2(b)(2), Income Tax Regs.; see also Holswade v. Commissioner, 82 T.C. 686, 698, 701 (1984). The amount of time during the period of the trip that is spent on personal activity, compared to the amount of time spent on activities directly relating to the taxpayer's trade or business, is an important factor in determining whether the trip is primarily personal. Holswade v. Commissioner, supra. The taxpayer must prove that the trip was primarily related to the trade or business. Rule 142(a). Petitioners contend that the Orlando trip was primarily related to petitioner husband's business as a real estate broker, and, therefore, the $905 automobile rental expense should be deductible on Schedule C of their return as a trade or business expense. Petitioners contend further that any sightseeing and other personal activities engaged in during the trip were purely incidental. Respondent contends that the Orlando trip was not primarily related to petitioner husband's trade or business as a real estate broker, and, therefore, the automobile rental expense is not deductible.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011