Judy is a self-employed musician who performs for a variety of events. This year, Judy was fined $290 by the city for violating the city's noise ordinance with a relatively loud performance. As a consequence, Judy contributed $920 to a campaign committee formed to recall the city's mayor. Judy normally hires three part-time employees to help her schedule events and transport equipment. Judy paid a total of $33,800 to her employees through June of this year. In June, Judy fired her part-time employees and hired her husband to replace them. However, Judy paid him $54,200 rather than $33,800. Judy is on the cash method and calendar year, and she wants to know what amount of these expenditures is deductible as business expenses.

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The Answer of Judy is a self-employed musician who performs for a variety of events. This year, Judy was fined $290 by the city for violating the city's noise ordinance with a relatively loud performance. As a consequence, Judy contributed $920 to a campaign committee formed to recall the city's mayor. Judy normally hires three part-time employees to help her schedule events and transport equipment. Judy paid a total of $33,800 to her employees through June of this year. In June, Judy fired her part-time employees and hired her husband to replace them. However, Judy paid him $54,200 rather than $33,800. Judy is on the cash method and calendar year, and she wants to know what amount of these expenditures is deductible as business expenses.

Judy Is a Self-Employed Musician Who Performs for a Variety