Lindsey Forbes,a detective who is single,operates a small pottery activity on a part-time basis.This year she reported the following income and expenses from this activity: In addition,she had salary of $70,000 and itemized deductions,not including expenses listed above,of $6,800.
a.What is the amount of Lindsey's taxable income assuming the activity is classified as a hobby?
b.What is the amount of Lindsey's taxable income assuming the activity is classified as a trade or business?

Question

Lindsey Forbes,a detective who is single,operates a small pottery activity on a part-time basis.This year she reported the following income and expenses from this activity:  In addition,she had salary of $70,000 and itemized deductions,not including expenses listed above,of $6,800.
a.What is the amount of Lindsey's taxable income assuming the activity is classified as a hobby?
b.What is the amount of Lindsey's taxable income assuming the activity is classified as a trade or business?

Quizplus · Accepted Answer

The Answer of Lindsey Forbes,a detective who is single,operates a small pottery activity on a part-time basis.This year she reported the following income and expenses from this activity:  In addition,she had salary of $70,000 and itemized deductions,not including expenses listed above,of $6,800.
a.What is the amount of Lindsey's taxable income assuming the activity is classified as a hobby?
b.What is the amount of Lindsey's taxable income assuming the activity is classified as a trade or business?

Lindsey Forbes,a Detective Who Is Single,operates a Small Pottery Activity