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Regs. Petitioner offered no further evidence with respect to the
business purpose of these trips other than her testimony that the
trips served an educational purpose for the au pairs. We are not
satisfied that these trips were primarily related to petitioner's
trade or business.
On the basis of this record, we conclude that petitioner is
entitled to a deduction for travel expenses associated with her
trips to Minneapolis, Seattle, and Boston. Accordingly,
petitioner is entitled to a deduction of $911.64 for travel
expenses.
9. Meals and Entertainment
A taxpayer may deduct meal and entertainment expenses if
they are directly related to the active conduct of the taxpayer's
trade or business. Sec. 1.274-2(d)(1), Income Tax Regs. The
deduction for meal and entertainment expenses generally is
limited to 50 percent of the substantiated amount. Sec. 274(n).
Petitioner claimed she incurred meal and entertainment
expenses in the amount of $523.62. Petitioner provided canceled
checks and copies of her credit card statements for restaurant
meals and groceries. Petitioner testified that she incurred
expenses in entertaining au pairs and families either at
restaurants or at her home. We find petitioner's testimony
credible and detailed with respect to the business purpose of the
meals and the business relationship of the individuals
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