If a Taxpayer Operated an Illegal Business (Not Drug Trafficking)

question 12

Essay

If a taxpayer operated an illegal business (not drug trafficking), what expenses can be deducted and what expenses are disallowed?

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Definitions:

Program Year

A specific period used for administrative, financial, or operational planning and assessment, often aligning with a fiscal or academic calendar.

Ace of Spades

A playing card with a single spade symbol and an 'A' rank, traditionally considered to be the highest card in the deck in many card games.

Ace of Hearts

Typically refers to a playing card in the suit of hearts that features a single pip in the center, often associated with love and happiness in symbolism.

King of Spades

A playing card in a standard deck, typically portrayed with the image of a king wielding a spade.