Kyle drives a race car in his spare time and on weekends. His records regarding this activity reflect the following information for the year. $$\begin{array} { | l | r | }
\hline \text { Income } & \$ 7,800 \
\hline \text { Entry fees } & 2,100 \
\hline \text { Depreciation on car } & 1,700 \
\hline \text { Gasoline } & 1,000 \
\hline \text { Interest on home equity loan for race car } & 800 \
\hline \text { Insurance premiums } & 2,500 \
\hline
\end{array}$$ What is the allowable deduction (before any AGI limitation) for depreciation assuming that this activity is not engaged in for profit and Kyle can itemize his deductions?

Question

Kyle drives a race car in his spare time and on weekends. His records regarding this activity reflect the following information for the year. $$\begin{array} { | l | r | } 
\hline \text { Income } & \$ 7,800 \
\hline \text { Entry fees } & 2,100 \
\hline \text { Depreciation on car } & 1,700 \
\hline \text { Gasoline } & 1,000 \
\hline \text { Interest on home equity loan for race car } & 800 \
\hline \text { Insurance premiums } & 2,500 \
\hline
\end{array}$$ What is the allowable deduction (before any AGI limitation) for depreciation assuming that this activity is not engaged in for profit and Kyle can itemize his deductions?

Quizplus · Accepted Answer

The Answer of Kyle drives a race car in his spare time and on weekends. His records regarding this activity reflect the following information for the year. $$\begin{array} { | l | r | } 
\hline \text { Income } & \$ 7,800 \
\hline \text { Entry fees } & 2,100 \
\hline \text { Depreciation on car } & 1,700 \
\hline \text { Gasoline } & 1,000 \
\hline \text { Interest on home equity loan for race car } & 800 \
\hline \text { Insurance premiums } & 2,500 \
\hline
\end{array}$$ What is the allowable deduction (before any AGI limitation) for depreciation assuming that this activity is not engaged in for profit and Kyle can itemize his deductions?

Kyle Drives a Race Car in His Spare Time and on Weekends