Indicate the proper treatment in the current year for the underlined amounts. Treat each item as an independent event. Indicate whether the amount is deductible or not; if deductible whether it is deductible FOR or FROM AGI; and indicate the amount of the deduction for the current year considering any relevant limitations. Assume the taxpayer has deductions greater than the standard deduction, has AGI of $69,000 without regard to the following transactions and has no "total" income limitations related to itemized deductions.
-Hobby expenses of $2,500. Hobby income is $2,000.
A)Not Deductible
B)Deductible - For AGI
C)Deductible - From AGI

Question

Quizplus · Accepted Answer

Hobby expenses are not deductible under the Tax Cuts and Jobs Act of 2017. Previously, they could be deducted as miscellaneous itemized deductions to the extent of hobby income, but this provision was suspended through 2025.

Indicate the Proper Treatment in the Current Year for the Underlined