Masonry Magazine December 1963 Page. 15
Business Days
Question: How will time be allocated between business and nonbusiness activity?
Answer: Generally, the allocation will be made on day-by-day basis by comparing the number of "business days" with "nonbusiness days."
Question: Is the day of departure as well as the day of return considered for purposes of determining whether 25 percent or more of the time away from home is spent on personal trips?
Answer: Yes.
Question: Are days in transit considered "business days" or "personal days"?
Answer: They are considered "business days" provided the travel is by a reasonably direct route to the business destination and does not involve substantial nonbusiness diversions.
Question: If the travel is not by a reasonably direct route, what is the rule?
Answer: The number of business days in transit will be counted as if you took a reasonably direct route to the business destination using the same means of transportation.
Question: If I am required to attend a specific and bona fide business meeting which lasts for only a portion of the normal working day, would this be considered a business day?
Answer: Yes.
Question: How do you count necessary stand-by time such as legal holidays or weekends falling between business meetings?
Answer: Generally, such days will be counted as business days if they fall between business days. However, if such days fall at the end of your business meetings and you remain at the business destination for personal purposes, such days will be considered personal days.
Circumstances Beyond Control
Question: What if, due to circumstances beyond my control, I am not able to pursue business activities at my business destination on a certain day?
Answer: The day will ordinarily be considered a business day.
Travel Expense Allocation
Question: Assuming the new travel allocation rule applies to a trip which takes 16 days, of which 8 days are business days and the remainder vacation days, and the round trip transportation cost is $300, how much of the cost is deductible?
Answer: Since one-half (8/16) of the trip was business, one-half of the round trip cost, or $150, would be deductible as a business travel expense.
BUSINESS GIFTS
Question: Can I deduct the cost of a business gift?
Answer: Yes, up to $25 annually for each recipient. If the total cost of all of your business gifts to one individual during the taxable year exceeds $25, you may only deduct $25.
Question: Since different rules apply to entertainment and to gifts, when is an expenditure considered "entertainment" and when is it a "gift"?