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Kitty Runs a Brothel (Illegal Under State Law)and Has the Following

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Kitty runs a brothel (illegal under state law)and has the following items of income and expense.What is the amount that she must include in taxable income from her operation?
Kitty runs a brothel (illegal under state law)and has the following items of income and expense.What is the amount that she must include in taxable income from her operation?


Definitions:

Limbic System

A complex system of nerves and networks in the brain, controlling basic emotions and drives such as fear, pleasure, and anger.

Emotion

A complex psychological state that involves a subjective experience, a physiological response, and a behavioral or expressive response.

Aphagia

The inability to swallow or the loss of swallowing reflex, often due to neurologic or muscular disorders.

Hyperphagia

Overeating that leads to significant weight gain.

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