Question

Dr. Painless, a self-employed dentist, incurred the following expenses:

Investment expenses $ 700

Custodial fees related to Dr. Painless's Keogh plan 40

Work uniforms for Dr. Painless and Dr. Painless's employees 320

Subscriptions for periodicals used in the waiting room   110

Dental education seminar 1,300

What is the amount of expenses the doctor can deduct as business expenses on Schedule C, Profit or Loss from Business?

a) $2,430

b) $1,620

c) $1,770

d) $1,730

Answer 1

	AMount
Investment expenses	since its not business expense it is not allowable
Custodial fees related to Dr. Painless's Keogh plan	since its not business expense it is not allowable. it is a investment expenditure
Work uniforms for Dr. Painless and Dr. Painless's employees	320
Subscriptions for periodicals used in the waiting room	110
Subscriptions for periodicals used in the waiting room	1300
total	1730

Correct option is d - 1730

*all expenses allowed is a business expenditure and providing business services thus allowable