Kimberly is a self-employed taxpayer. She recently spent $1,000 for airfare to travel to Italy. What amount of the airfare is deductible in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.)

Question

Business

Lindsay George

4 November, 01:45

Kimberly is a self-employed taxpayer. She recently spent $1,000 for airfare to travel to Italy. What amount of the airfare is deductible in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.)

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Answers (1)

Know the Answer?

Aliza Simmons · Answer 1

The correct answer for personal use is $0 and for business use is $1,000.

Explanation:

According to the scenario, the given data are as follows:

Spent on airfare = $1,000

So, we can calculate the amount of airfare deduction by analyzing following terms:

If the travel is for personal use, then there will be $0 deduction for the amount of airfare, because no deductions allows for personal expenses. If the travel is for business use, then there will be 100% deduction which means $1,000 deduction for the amount of airfare, because there is 100% deduction allows for business expense.