Toby, owner of a cupcake shop in new york, is considering opening a similar business (i. e., a cupcake shop) in phoenix. after spending $4,200 investigating such possibilities in phoenix, toby decides against opening the store. what is the maximum amount of deduction for the current year attributable to these expenditures? a) $0b) $420c) $840d) $4,200

On september 1, 2016, steve loaned brett $2,000 at 12% interest compounded annually. steve is not in the business of lending money. the note stated that principal and interest would be due on august 31, 2018. in 2018, steve received $2,508.80 ($2,000 principal and $508.80 interest). steve uses the cash method of accounting. what amount must steve include in income on his income tax return?