Sarah has a gambling addition, she also owns a restaurant. In 2018 she paid interest on gambling debts, and she also paid for therapy to help to quit her addiction. What’s the tax effect of interest on gambling debts and the cost for therapy?

Sarah also have a consulting business, in 2016 one of her client paid their consulting fees beforehand for $1000. Sarah used some of the money for the preparation work. But then the consulting service was postponed by the client. Sarah never performed the service and never returned the money. She also didn’t report any income. What tax effect would this activity have on Sarah’s 2018 tax filing.