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Kitty runs a brothel (illegal under state law) and has the following items of income and expense. What is the amount that she must include
Kitty runs a brothel (illegal under state law) and has the following items of income and expense. What is the amount that she must include in taxable income from her operation?
Income $200,000
Expenses:
Rent 8,000
Utilities 2,000
Bribes to police 10,000
Office supplies 5,000
Legal fees 20,000
Depreciation 14,000
Illegal kickbacks 15,000
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