Maxine is the proprietor of a home based business. She paid $25,000 to her editorial assistant, $8,000 to her son as her computer technician, and $32,000 to herself as salary. How much can she deduct as a business expense on her income tax return?

Question

Quizplus · Accepted Answer

Maxine can deduct the total expenses paid to her editorial assistant, her son, and herself as business expenses on her income tax return. 
Total business expenses = $25,000 (editorial assistant) + $8,000 (son) + $32,000 (salary to herself) = $65,000 
Therefore, Maxine can deduct $65,000 as a business expense on her income tax return.

Maxine Is the Proprietor of a Home Based Business