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Mary owns a travel agency and made a Sec 183(e)(1) election. Mary took around the world trips in years 1 and 2 to improve her
Mary owns a travel agency and made a Sec 183(e)(1) election. Mary took around the world trips in years 1 and 2 to improve her performance as a travel agent. Profits and losses for the 1st 5 years of operation are:
Yr 1 - ($80,000) loss
Yr 2 ($125,000) loss
Yr 3 $500 profit
Yr 4 - $200 profit
Yr 5 - $800 profit
What is the effect of Sec 183 to Mary?
Does Mary need or have substantial authority for claiming the losses in years 1 and 2.
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