Karan M. Hintze - Page 15

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          traveling expenses relating to her trip to Denmark in May of                
          1994.  Petitioner is therefore allowed a deduction for items 1              
          through 4 on appendix C, which total $363.87.8                              
               With respect to her second trip to Denmark in 1994,                    
          petitioner left from Seattle, Washington, on August 25 and                  
          returned on September 4.  Her trip thus spanned 11 days.  Since             
          the trip exceeded the 7-day threshold set forth in section                  
          274(c)(2)(A),9 we must determine whether the portion of the time            
          not allocable to petitioner’s trade or business constituted 25              
          percent or more of the total time of her trip.                              
               The regulations specify that the total time traveling                  
          outside the United States shall be allocated on a day-by-day                
          basis between days of business activity and days of nonbusiness             
          activity.  See sec. 1.274-4(d)(2), Income Tax Regs.  We therefore           
          must allocate each of the 11 days which petitioner spent on the             
          trip between these categories.10  The 2 days which petitioner               
          spent traveling to and returning from Denmark are considered                

               8  We note that petitioner did not introduce evidence as to            
          the cost of her travel to and from Denmark with respect to this             
          first trip, nor did she claim a deduction therefor.                         
               9  In analyzing whether the travel time exceeded the 7-day             
          threshold provided in sec. 274(c)(2)(A), the day of departure is            
          not considered.  See sec. 1.274-4(c), Income Tax Regs.  Thus, for           
          purposes of sec. 274(c)(2)(A), petitioner’s trip lasted 10 days.            
               10  For purpose of analyzing the 25-percent test under sec.            
          274(c)(2)(B), the day of departure is included in the                       
          calculation.  See sec. 1.274-4(c), Income Tax Regs.                         

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