Calculate pennys deduction for the racing expenses assuming

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Reference no: EM13566562

Penny, a full-time biochemist, loves stock car racing. To feed her passion, she bought a used dirt track car and has started entering some local dirt track races. The prize money is pretty small ($1,000 for the winner), but she really is not in it for the money. Penny reported the following income and expenses from her nights at the track:

Prize money	$2,500
Expenses:
Transportation from her home to the races	1,000
Depreciation on the dirt track car	4,000
Entry fees	3,500
Oil, gas, supplies, repairs for the dirt track car	2,050

Calculate Penny's deduction for the racing expenses assuming that the racing activity is a hobby, and Penny's AGI is $97,500 before considering the prize money.

Reference no: EM13566562

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