Question 6 of 75. IV a has sponsored, and participated in, a barbeque team for t

Question

Question 6 of 75. IV a has sponsored, and participated in, a barbeque team for the last ten years. The team enters several contests a year, but has never come close to turning a pr being able to get away from work and unwind at the contests.Which of the following is most accurate? ofit. Edwina has told you she doesn't really care if the team makes any money,she O Edwina may deduct all of the expenses associated with the team. O Edwina may only deduct her proportional share of the expenses of the team. O Edwina may never deduct any of the expenses of the team. @ This activity is likely a hobby for Edwina, and her deductions may be limited. Mark for follow up Question 7 of 75. Peyton is a self-employed certified financial planner and began his business in 2016. During 2016, he purchas computer and a $250 desk. He building he owns. Which purchase(s) can he expense in 2016 without limitation? also paid 0 in legal/incorporation fees, and spent $12,000 for a new root Computer, desk, legal/incorporation fees, root computer, desk, legal/incorporation fees. O Computer and desk. Legal fees/incorporation fees, roof. thats Cons dere

Explanation / Answer

6 of 75)

Answer : Edwina may deduct all of the expenses associated with the team.

=> As Edwina is expending on a profitable business, even-though the business has never turns into profit. Thus, Edwina may deduct all of the expenses associated with the team.

In the case, the barbeque team earns profit, Edwina would have mentioned the income in her return, so all the expenses would be deducted.

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