Steve Smith works full-time as a CPA at a local accounting firm. He has some...
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Accounting
Steve Smith works fulltime as a CPA at a local accounting firm. He has some extra money saved and has always loved bowling. Therefore, he decided to purchase a bowling alley five years ago since he always enjoyed bowling. However, due to his busy schedule, he only opens the bowling alley to customers on the weekends when he is usually there to play with family and friends Unfortunately, there are few customers and the bowling alley has incurred losses for the last several years. He does, however maintain an office at the bowling alley and advertise in a local newspaper. Steve does not have any prior experience dealing with bowlingbowling alleys. He however, is excited about deducting all of the expenses associated with the bowling alley as business expenses on his tax return. Consider the appropriateness of Steves plan from a tax perspective.
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