Judy is a self-employed musician who performs for a variety of events. This year Judy was fined $350 by the city for violating the city's noise ordinance with a relatively loud performance. As a consequence Judy contributed $11,000 to a campaign committee formed to recall the city's mayor. Judy normally hires three part-time employees to help her schedule events and transport equipment. Judy paid a total of $43,000 to her employees through June of this year. In June Judy fired her part-time employees and hired her husband to replace them. However, Judy paid him $65,000 rather than $43,000. Judy is on the cash method and calendar year, and she wants to know what amount of these expenditures is deductible as business expenses.

Answer rating: 100% (QA)

86000 The fine and political contribution are not deductible ... View the full answer