Oscar Drives a Taxi on Weekends

Multiple Choice

Oscar drives a taxi on weekends. In maximizing the amount of fares he earns, he occasionally gets tickets for speeding. Oscar figures that as long as he keeps his traffic violations under $100 over a weekend, he can more than offset those costs with additional fares. What is/are the tax effect(s) of Oscar's speeding ticket costs?

A) The costs are deductible because they are ordinary and necessary expenses directly related to the business.
B) The costs are deductible because they have a business purpose and the business is not illegal.
C) The costs are not deductible because the business activity is illegal.
D) The costs are not deductible because they are due to violations of law.