How much can he deduct as a business expense on his income tax return
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 29CE
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Paul is the proprietor of a home based business. He paid $25,000 to his part-time office manager who is a U.S. citizen, $8,000 to his adult son as his computer technician, and $32,000 to himself as salary. The son is a fully trained computer technician and his charges to Paul were considered to be at fair market value. How much can he deduct as a business expense on his income tax return?
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