Answer:
Answer explained below
Explanation:
Judy cant deduct the $250 ticket because its a violation of the law, even though it is related to her T/B it is avoidable, just like UPS cant deduct parking tickets. Political contributions are not deductible either, only charitable contributions are. The 33,000 for the employees that worked for her through June is an allowable business expense. The 55,000 she paid to her husband for the remainder of the year could be deductible, but since it is a significant increase since the previous employees she may have to prove, if audited, that her husband was more qualified and capable than the previous three employees which may be hard to do. This item is debatable since it really is a low amount in general and we dont know what her total income is so its hard to say if a 55,000 salary for 6months is appropriate relative to her business income.
So if Judy plays it safe she will deduct the following:
33,000 wages paid to first three employees + 11,000 paid to her husband (1/3 of 33,000 that was paid to three employees), for a total of 45,000 in business expenses.