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:

E-cigarettes

Battery-operated devices that deliver nicotine with flavorings and other chemicals to the lungs in vapor instead of smoke.

Nicotine Withdrawal

The range of symptoms experienced when quitting or reducing intake of nicotine, including cravings, irritability, and anxiety.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often reflecting a natural response to stress.

E-cigarette Use

The act of inhaling vapor produced by an electronic cigarette, a device used as an alternative to traditional smoking.