Question

Incorrect Question 2 0/0.3 pts On Dec. 15, 2019, Julie's Tax Prep, a cash-method taxpayer, prepaid $4,000 worth of deductible interest on a business loan. The interest won't accrue until January 2020. Julie's Tax Prep will be displaying for the first time at a trade show in July 2020. On Dec. 16, 2019, Julie's prepaid the $8,000 trade show booth rental expense. The payment isn't due until May 2020, and use of the booth will occur in July 2020. In addition, On Dec. 28, 2019, Ed's Equipment repaired some equipment in Julie's office and billed Julie's $2,000. Julie's received the invoice on Dec. 28, 2019 and paid the $2,000 invoice on Jan. 29,2020. How much of the $14,000 in deductible business expenses may Julie's Tax Prep deduct in 2019? 12,000

On Dec. 15, 2019, Julie’s Tax Prep, a cash-method taxpayer, prepaid $4,000 worth of deductible interest on a business loan. The interest won’t accrue until January 2020.

Julie’s Tax Prep will be displaying for the first time at a trade show in July 2020. On Dec. 16, 2019, Julie’s prepaid the $8,000 trade show booth rental expense. The payment isn’t due until May 2020, and use of the booth will occur in July 2020.

In addition, On Dec. 28, 2019, Ed’s Equipment repaired some equipment in Julie’s office and billed Julie’s $2,000. Julie’s received the invoice on Dec. 28, 2019 and paid the $2,000 invoice on Jan. 29, 2020.

How much of the $14,000 in deductible business expenses may Julie’s Tax Prep deduct in 2019?

Answer 1

a. If you Take out a business wine of crean , the Interest you pay le Completely deductible. Interest on a business was of 44,000 es deductible b) If a Trade show is legitimately business related the expenses related to Trade show is deductible. Trade show booth rentou Expense of 46,000 Is deductible c) A repair or routine maintainance to a Capital assets such as Office building or equipment may be a business Expense that is fully deductible in The year that you knor the costs Repairs of 42,000 Incurred on equipment in Jokes Office is allowed as deduction, The Total amount of $14,000 ls all allowed as a deduction for business Expenses In the year in which they are Incurred.