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1. Joshua, a head of household, has income and expenses from the following sources for 2019: Net loss from his small business Wages from unrelated

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1. Joshua, a head of household, has income and expenses from the following sources for 2019: Net loss from his small business Wages from unrelated business $21,500 14,000 Interest income 8,000 Itemized deductions 7,500 How much is Joshua's net operating loss, if any? How is any net operating loss treated? 2. Randi incurred the following expenses in operating her personal car that was also used in her sole proprietorship. The car was driven 17,750 miles during the year 2019: Variable expenses including fuel, maintenance, etc. $ 5,900 Fixed expenses including insurance, depreciation, etc. 3,900 Interest on loan secured by the automobile 560 Business related parking and tolls 25 Randi drove this vehicle 3,400 business miles during the year. This is the first year that the auto is used in the business. What is the maximum deduction for the business use of this automobile? What restrictions will Randi face in future years related to this auto if Randi elects to use the actual costs? 3. Greg flew from Kansas City to Boston on Thursday to attend business on Friday. He could have flown home Friday evening with no additional airfare. He stayed over Saturday through Monday to attend a sporting event and visit the historic sights. Greg paid airfare of $300, meals of $26 per day (after reduction to 50 percent) and lodging of $59 per day. Greg may deduct how much? 4. Shaoq is a very successful self-employed hair stylist who incurred the following expenses in a trade or business: Meals with clients where business was discussed $ 2,000 Meals with clients where business was not discussed 750 Meals served at employee meetings 400 Employee meals while away from home overnight (reimbursement given to employees) 500 Shaoq's meals while away from home overnight 500 Tickets to dramatic performance with clients associated with business 300 How much of the above may Shaoq deduct

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