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 personal purposes.

1) $0
2) $2,700
3) Cannot be determined without additional information
4) Other

Answer 1

The airfare is not deductible because the trip was for personal purposes.

Step-by-step explanation:

Kimberly, as a self-employed taxpayer, can deduct a portion of her airfare as a business expense if she can show that the trip had a business purpose. However, since her trip was entirely for personal purposes, she cannot deduct any portion of the airfare.

So, the correct answer is option 1) $0.