Lindsey Forbes, a detective who is single, operates a small pottery activity in her spare time. 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 in her spare time. 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 in her spare time. 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