Assignment 3 - Week 3 Deductions and Losses In General...

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Week 3 Deductions and Losses: In General Deductions and Losses: Certain Business Expenses and Losses Assignment for Week 3 --- ACC 307 Federal Income Taxes Chapter 6 Page 6-34: Problem 20 Gordon anticipates that being positively perceived by the individual who is elected mayor will be beneficial for his business. Therefore, he contributes to the campaigns of both the Democratic and the Republican candidates. The Republican candidate is elected mayor. Can Gordon deduct any of the political contributions he made? No. Allowing deductions might encourage abuses and enable businesses to have undue influence upon the political process Page 6-34: Problem 24 An individual operates an activity at a loss. What is the tax effect of the loss if the activity is classified as: a. A hobby? The hobby loss rules apply only if the activity is not engaged in for profit. If an activity is deemed to be a hobby, the expenses are deductible only to the extent of the gross income from the hobby income. b.
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This note was uploaded on 02/08/2010 for the course ACC317 adv. feder taught by Professor Man during the Spring '10 term at Strayer.

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Assignment 3 - Week 3 Deductions and Losses In General...

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