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:

Vitamin Deficiency

A lack or shortage of certain vitamins in the body, which can lead to various health problems and diseases depending on the specific vitamin missing.

Adult Body

Describes the mature physical form of a human being or an organism, typically after full growth and development have been achieved.

Blood

A bodily fluid in humans and other animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away from those cells.

Erythroblastosis Fetalis

A serious blood disorder in newborns caused by an incompatibility between the blood types of the mother and baby.