During the Current Year, Lucy, Who Has a Sole Proprietorship $\quad$

question 104

Essay

During the current year, Lucy, who has a sole proprietorship, pays legal and accounting fees for the following:
Services performed to resolve a business contract $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\$ 5,000$ Services rendered in resolving a federal tax deficiency
relating to her buriness $\quad$$\quad$ 2,000 Tax return preparation fees:
$\begin{array}{ll}\text { Allocable to Schedule C (her sole proprietorship) } & 1,800 \\\text { Allocable to Schedule E (a rental property she owns) } & 800 \\\text { Allocable to remainder of Form } 1040 & 900 \\\text { Legal fees incident to her divorce (no taxadvice) } & 2,000\end{array}$ What amount is deductible for AGI?

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Definitions:

Yoga

A group of physical, mental, and spiritual practices or disciplines originating in ancient India, aimed at attaining inner peace and physical fitness.

Cycling

is the activity of riding a bicycle for recreation, transportation, or sport.

Muscle Mass

The total amount of skeletal muscle in the body, which plays a key role in physical strength and overall health.

Decline

A decrease in the quantity, quality, or extent of something.