1. Indicate whether the following expenditures are trade or business (T), production of income
deductions (PI), personal deductions (P), or are not deductivel (X). Also indicate if the
deductible expenditures are deductible 'for' or 'from' AGI.
a. Intereset Expense on busines loan
b. Hobby Expenses in excess of hobby income
c. Communiting expenses of individual taxpayer
d. Rent Payments by illegal gambling business
e. Payment to bride goverment offical made by a business
Solution
a. Intereset Expense on busines loan :(PI)
b. Hobby Expenses in excess of hobby income (X)
c. Communiting expenses of individual taxpayer(P)
d. Rent Payments by illegal gambling business (X)
e. Payment to bride goverment offical made by a business(X)
(C) is deductible for AGI and (A) is deductible from AGI.