In his spare time, Fred likes to restore old furniture and sell it to his friends.He is a lawyer by trade.During 2018, he sells $500 worth of furniture and has $21,000 worth of marketing and equipment rental expenses.Which one of the following is true?
A)Fred may deduct all $21,000 of his expenses because Fred is engaged in a hobby.
B)Fred may deduct all $21,000 of his expenses because Fred is engaged in a trade or business.
C)Fred cannot deduct any of the expenses because he is engaged in a hobby.
D)Fred's deductions are limited to the income from selling furniture because he is engaged in a hobby.
E)None of the above.

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The Answer of In his spare time, Fred likes to restore old furniture and sell it to his friends.He is a lawyer by trade.During 2018, he sells $500 worth of furniture and has $21,000 worth of marketing and equipment rental expenses.Which one of the following is true?
A)Fred may deduct all $21,000 of his expenses because Fred is engaged in a hobby.
B)Fred may deduct all $21,000 of his expenses because Fred is engaged in a trade or business.
C)Fred cannot deduct any of the expenses because he is engaged in a hobby.
D)Fred's deductions are limited to the income from selling furniture because he is engaged in a hobby.
E)None of the above.

In His Spare Time, Fred Likes to Restore Old Furniture