Terry is a practicing attorney who decides to become an agent for musical groups on the side. Terry engages in the activity and has the following revenue and expenses:
a. What are four of the factors the IRS will consider when evaluating whether her activity is a hobby?
b. If the activity is deemed to be a regular business, what is the amount of Terry's net income or loss from the activity?
c. If the activity is deemed to be a hobby, what is the amount (if any) of Terry's expenses from the activity that may be deducted, before applying the 2 percent of AGI floor for miscellaneous itemized deductions?

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The Answer of Terry is a practicing attorney who decides to become an agent for musical groups on the side. Terry engages in the activity and has the following revenue and expenses:
a. What are four of the factors the IRS will consider when evaluating whether her activity is a hobby?
b. If the activity is deemed to be a regular business, what is the amount of Terry's net income or loss from the activity?
c. If the activity is deemed to be a hobby, what is the amount (if any) of Terry's expenses from the activity that may be deducted, before applying the 2 percent of AGI floor for miscellaneous itemized deductions?

Terry Is a Practicing Attorney Who Decides to Become an Agent