Virginia,a practicing CPA,receives $11,000 from the sale of rare orchids that she grows.Her expenses of operating this hobby activity follow:

$\begin{array} { lr }
\text { Property taxes on the structures } &\$ 4,500 \
\text { Seeds, fertilizer, and bug sprays. } &8,000 \
\text { Depreciation on the structures } &5,000
\end{array}$
How much of the expenses that Virginia incurs can be deducted as hobby expenses?
A)$ - 0 -
B)$ 4,500
C)$11,000
D)$12,500
E)$17,500

Question

Virginia,a practicing CPA,receives $11,000 from the sale of rare orchids that she grows.Her expenses of operating this hobby activity follow:

$\begin{array} { lr } 
\text { Property taxes on the structures } &\$ 4,500 \
\text { Seeds, fertilizer, and bug sprays. } &8,000 \
\text { Depreciation on the structures } &5,000
\end{array}$
How much of the expenses that Virginia incurs can be deducted as hobby expenses?
A)$ - 0 -
B)$ 4,500
C)$11,000
D)$12,500
E)$17,500

Quizplus · Accepted Answer

Hobby expenses can be deducted up to the amount of income generated from the hobby. Virginia can deduct $11,000, which is the income she received from the sale of the orchids.

Virginia,a Practicing CPA,receives $11,000 from the Sale of Rare Orchids