Margaret, a single taxpayer, operates a small pottery activity in her spare time. During the current year, she reported the following income and expenses from this activity which is classified as a hobby:
$\begin{array}{lr}
\text {Revenue from sale of pottery }&\$4,000\
\text {Depreciation on potter's wheel }&(3,000)\
\text {Property taxes on shed where she does work }&1,100\
\text {Supplies used such as clay, etc.}&6,500\
\end{array}$
In addition, she had salary of $75,000 and itemized deductions, not including those listed above, of $2,200.
What is the amount of her taxable income?

Question

Margaret, a single taxpayer, operates a small pottery activity in her spare time. During the current year, she reported the following income and expenses from this activity which is classified as a hobby:
 $\begin{array}{lr}
\text {Revenue from sale of pottery }&\$4,000\
\text {Depreciation on potter's wheel }&(3,000)\
\text {Property taxes on shed where she does work }&1,100\
\text {Supplies used such as clay, etc.}&6,500\
\end{array}$
 In addition, she had salary of $75,000 and itemized deductions, not including those listed above, of $2,200.
What is the amount of her taxable income?

Quizplus · Accepted Answer

The Answer of Margaret, a single taxpayer, operates a small pottery activity in her spare time. During the current year, she reported the following income and expenses from this activity which is classified as a hobby:
 $\begin{array}{lr}
\text {Revenue from sale of pottery }&\$4,000\
\text {Depreciation on potter's wheel }&(3,000)\
\text {Property taxes on shed where she does work }&1,100\
\text {Supplies used such as clay, etc.}&6,500\
\end{array}$
 In addition, she had salary of $75,000 and itemized deductions, not including those listed above, of $2,200.
What is the amount of her taxable income?

Margaret, a Single Taxpayer, Operates a Small Pottery Activity in Her