Question

Kimberly is a self-employed taxpayer. She recently spent $2,700 for airfare to travel to Italy. What amount of the airfare is deductible in each of the following alternative scenarios? Her trip was entirely for business purposes.

Answer 1

The entire $2,700 spent on airfare to travel to Italy for business purposes is deductible for Kimberly as a self-employed taxpayer.

Step-by-step explanation:

To determine the amount of the airfare that is deductible for Kimberly as a self-employed taxpayer, we need to consider the IRS rules for deducting travel expenses. According to the IRS, if the trip is primarily for business purposes, then the entire cost of the airfare would be deductible. Therefore, in this case, the entire $2,700 spent on airfare to travel to Italy would be deductible.

If Kimberly's trip to Italy was entirely for business purposes, the full $2,700 she spent on airfare is generally deductible on her tax return. The IRS allows self-employed individuals to deduct ordinary and necessary expenses incurred while conducting business. Assuming her travel meets IRS guidelines, Kimberly can claim the full amount as a business expense.