Determine how each of the foll

Determine how each of the following expenses would be deducted for tax purposes.
If the expense is not deductible, explain why not.
a. Chander paid $500 in interest on a loan he used to purchase equipment for his retail business.
b. Peter paid $500 in interest on a loan he used to purchase 1,000 shares of Pickled Pepper stock.
c. Portia paid $500 in interest on a loan she used to purchase her personal automobile.
d. Jordan’s primary source of income is his wholesale warehousing business. During the current year, he paid $8,000 in state income taxes.
e. Alphonse is a professional golfer who likes to race cars in his spare time. He spent $60,000 on expenses related to racing cars during the current year.
f. Barry is an insurance agent. He bought a golf cart and had his insurance company logo put on the golf cart to attract customers while he played golf.

 

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