Question: Module 2 Prob. Q1. Module 2 Problems Logan owns a horse ranch. Logan dislikes horses, but he opened the ranch because he heard it was

Module 2 Prob.

Q1.

Module 2 Problems Logan owns a horse ranch. Logan dislikes horses, but he opened the ranch because he heard it was a lucrative business and he wanted to make moncy. This year, Logan hired his brother, Luke, to work at the horse ranch. Logan pays Luke $1,000/hr to clean the horse stalls. Logan also hired his best friend, Lucy, to do Logan's grocery shopping and other personal errands. He pays Lucy $15/hr. Are the amounts paid to Luke or Lucy deductible? Why or why not? Apply the requirements of section 162

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