Judy Is a Self-Employed Musician Who Performs for a Variety

question 55

Essay

Judy is a self-employed musician who performs for a variety of events. This year, Judy was fined $250 by the city for violating the city's noise ordinance with a relatively loud performance. As a consequence, Judy contributed $1,000 to a campaign committee formed to recall the city's mayor. Judy normally hires three part-time employees to help her schedule events and transport equipment. Judy paid a total of $33,000 to her employees through June of this year. In June, Judy fired her part-time employees and hired her husband to replace them. However, Judy paid him $55,000 rather than $33,000. Judy is on the cash method and calendar year, and she wants to know what amount of these expenditures is deductible as business expenses.

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Definitions:

Glottis

The opening between the vocal cords in the larynx, crucial for producing vocal sounds.

Positive Message

Communication that conveys favorable, optimistic, or encouraging information or sentiments.

News Release

An official statement issued to newspapers, magazines, and other media for the purpose of providing information, an announcement, or making an official statement.

Customary Pattern

Established or habitual methods of behavior or operations typical within a particular context or environment.