Using the Tests for Deductibility Discussed in Chapter 5,explain Why

question 97

Essay

Using the tests for deductibility discussed in Chapter 5,explain why the following expenses are not deductible.
a.Mel is a sprint car racer.He does repair and maintenance on his cars in the garage at his home.After repairing the cars,he tests them on city streets.He received 15 citations (totaling $2,900)for speeding,running stop signs,and reckless driving.
b.Albert,a carpenter,pays his 10-year-old son $150 a week to empty waste cans in his work shop.Albert's son works each evening and two hours on Saturday morning.
c.Sharon contributes $25 to a local organization that is campaigning against a foreign trade bill.The legislation would damage Sharon's business.
d.Marline borrows $5,000 and pays $500 in interest.The loan is used to purchase bonds issued by the City of Lafayette School District.
e.Christine is the wife of a physician,and she is an experienced horseman.She has raised horses for ten years and occasionally shows them for prize money.She also boards horses for monthly fees.She enjoys her horse activity but has never made a profit in any year.Her horses are appraised at $200,000.

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Definitions:

Amoeboid Cells

Cells that move or feed by forming extensions of their cytoplasm, known as pseudopodia.

Rhizarians

A diverse supergroup of amoeboid cells that often have hard outer shells, called tests, through which cytoplasmic projections extend; include forams, actinopods, and certain shell-less amoebas.

Unikonts

A group of eukaryotic organisms that include amoebas, most animals, and fungi, characterized by a single emergent flagellum.

Evolutionary Significance

The impact or importance of evolutionary changes and adaptations in the history and development of species, populations, or genes.