3. Elizabeth is a physician. In her spare time she wants to become a famous stock car racer. in the cur rent year, Elizabeth incurs the following costs Stock car purchase Entry fees Driving lessons Tnvel expenses to races Total 5140,000 $5,000 $170,000 Of the races entered by Elizabeth this year, her total carnings (race winnings) are 5250. Probably,the RS will aliow Elizabeth to deduct what amount of the above expenditures (before any 2 percent imit)? b.$250 c.$30,000 d. $170,000 4. Under Section 183, if an acuivity is not engaged in for proft, deductions related to the activity will be imited. Which of the following is likely to be deemed a hobby by the IRS? a A CPA in private practice b. A ranch owned by an executive that has shown a profit for four of the last five years c An individual borrowing money to open a gift shop d A physician who operates a photography studio at a loss for ive consecutive years . During the current year, Lee pays 55,000 to an attorney to obuain a divorce. Of this amount, $2,000 is for tax advice about the divorce settlement. How much, if amy, of the $5,000 is deductible before con sidering any limitation based on AGI (b) $2.000