Kitty runs a brothel (illegal under state law)and has the following items of income and expense.What is the amount that she must include in taxable income from her operation?
Income
$200,000
Expenses:
Rent
8,000
Utilities
2,000
Bribes to police
10,000
Office supplies
5,000
Legal fees
20,000
Depreciation
14,000
Illegal kickbacks
15,000

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The Answer of Kitty runs a brothel (illegal under state law)and has the following items of income and expense.What is the amount that she must include in taxable income from her operation?
Income
$200,000
Expenses:
Rent
8,000
Utilities
2,000
Bribes to police
10,000
Office supplies
5,000
Legal fees
20,000
Depreciation
14,000
Illegal kickbacks
15,000

Kitty Runs a Brothel (Illegal Under State Law)and Has the Following