If a Taxpayer Operates an Illegal Business, No Deductions Are

question 104

True/False

If a taxpayer operates an illegal business, no deductions are permitted.

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Definitions:

Married Couple

Two individuals who are legally married to each other and may file taxes jointly or separately.

Filing Status

A category that defines the type of tax return form an individual or entity will use, based on marital status and other factors.

Adjusted Gross Income (AGI)

A person's entire income before adjustments, reduced by certain allowable deductions, to calculate the income subject to tax.

Gross Income

The total income received before any deductions or taxes are taken out.