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Question: Facts: Nina is a full-time CPA but she loves to compete in extreme sports events as a trick skier. She has been skiing all her life and she hopes to become successful enough eventually to compete full-time and just do some CPA work on the side. She has earned some prize money ($4,500) this year at various events and also incurred a lot of expenses. Her expenses this year included:

Travel expense for various competitions $3,200

Equipment $2,600

Entry fees $1,000

Coaching fees $9,000

Nina would like to claim all of her expenses as "business" expenses on a Sch. C. Locate the legal authority governing the determination of expenses associated with activities entered into for profit and advise Nina with regard to the advisability of reporting this activity as a Sch. C business.

Can she claim all her expenses from this various event as an business expense give IRC SECTION CODE to support your answer.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92810596

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