Calculate pennys deduction for the racing expenses assuming
Question # 00766924
Posted By:
Updated on: 06/24/2020 11:04 AM Due on: 06/28/2020
Penny, a full-time biochemist, loves stock car racing. To feed her passion, she bought a used dirt track car and has started entering some local dirt track races. The prize money is pretty small ($1,000 for the winner), but she really is not in it for the money. Penny reported the following income and expenses from her nights at the track:
| Prize money | $2,500 |
| Expenses: | |
| Transportation from her home to the races | 1,000 |
| Depreciation on the dirt track car | 4,000 |
| Entry fees | 3,500 |
| Oil, gas, supplies, repairs for the dirt track car | 2,050 |
Calculate Penny's deduction for the racing expenses assuming that the racing activity is a hobby, and Penny's AGI is $97,500 before considering the prize money.
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Rating:
/5
