Question
Written Assignment # 1 Julia operates a small business making gourmet pizza for highend events. Julias business is called Pizza Like the Italians. In order
Written Assignment # 1 Julia operates a small business making gourmet pizza for highend events. Julias business is called Pizza Like the Italians. In order to learn how Italians make pizza, Julia flew to Italy in 2018 and visited several pizza shops. During her trip, she visited with the pizza makers and solicited advice regarding how to make the best pizza. She also purchased some ingredients that she could not find in the U.S.
The cost of her trip was $3,500 and the cost of the ingredients was $1,200 In addition, Julia had the following items for 2018: $70,000 gross income from pizza sales $20,000 of operating expenses and COGS (not including the expenses discussed above) 2,500 miles driven for business purposes Can Julia deduct the cost of her trip to Italy, including the ingredients? Why or why not? Please calculate (showing your work) Julias adjusted gross income and her taxable income for the year. Assume she claims the standard deduction for a single filer. Be sure to explain any calculations.
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