Oscar Drives a Taxi on Weekends

question 31

Multiple Choice

Oscar drives a taxi on weekends. In maximizing the amount of fares he earns, he occasionally gets tickets for speeding. Oscar figures that as long as he keeps his traffic violations under $100 over a weekend, he can more than offset those costs with additional fares. What is/are the tax effect(s) of Oscar's speeding ticket costs?

• A)The costs are deductible because they are ordinary and necessary expenses directly related to the business.
• B)The costs are deductible because they have a business purpose and the business is not illegal.
• C)The costs are not deductible because the business activity is illegal.
• D)The costs are not deductible because they are due to violations of law.

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Definitions:

Cosmetic Procedures

Medical treatments aimed at enhancing or altering the appearance of the body without significant health reasons.

Middle-aged Women

Females in the mid-stage of life, typically considered to be between the ages of 40 and 65, facing various sociocultural and physiological changes.

Older Women

Adult females, usually defined as being of an age considered beyond the middle years, who may face unique health and social challenges.

Older Men

Refers to males of an advanced age, often implying increased wisdom, experience, or social status.