Gabby Owns and Operates a Part-Time Art Gallery,now in Its

question 89

Multiple Choice

Gabby owns and operates a part-time art gallery,now in its fifth year.She views it as a business activity,but she is concerned that the IRS will challenge her classification and consider it a hobby.Her business results,using the cash method of accounting,were net losses in the first and fourth years and small profits in the second and third years.It is now almost year-end and based on projections,the business is showing a small profit of $6,000.Repairs to the security system and to the heating/cooling system were recently completed and these bills total $7,000.When should Gabby pay these bills?

• A)before year-end to get the current year deduction
• B)next year
• C)split into $6,000 this year and $1,000 next year
• D)It does not matter when she pays the bills.The work was performed this year,so the costs will be deducted this year.

---

Definitions:

Brain Stem

The central trunk of the mammalian brain, connecting the brain to the spinal cord and regulating vital functions such as heart rate and breathing.

Adiposity Rebound Period

The time during childhood in which body fat increases after reaching its lowest point, often considered an indicator for later fatness in life.

Prenatal

Pertaining to the period or development before birth; occurring or existing before a child is born.

Neonatal

Pertaining to newborns, typically referring to the first 28 days of a child's life outside the womb.