28) Which of the following factors is not used to determine whether an activity is a hobby or a business? A) the taxpayer's financial status B) the taxpayer's expertise in the activity C) the success of the taxpayer in other dissimilar activities D) the personal pleasure derived from the activity 28) 29) Kelsey enjoys making cupcakes as a hobby and ocasionallysels hem for parties Kelbey 29) receives $1,000 in revenues from cupcake sales this year and pays $1,300 for supplies. Kelsey takes the standard deduction each year. The net effect of the cupcake activity on Kelsey's taxable income is A) an increase of $1,000. C) a decrease of $280. B) a decrease of $300. D) so. TRUE/FALSE. Write Tif the statement is true and F if the statement is false. 30) Due to stress on the job, taxpayer Fiona began to experience anxiety attacks. Her doctor 30) advised he the yoga lessons to alleviate this medical condition is tax deductible. r to engage in some relaxation activities. Fiona enrolled in yoga lessons. The cost of 31) 31) Expenditures for long-term care insurance premiums qualify as a medical expense deduction subject to an annual limit based upon the age of an individual. 32) 32) Capital expenditures incurred for medical purposes which permanently improve or better the taxpayer's property are deductible, but only to the extent the cost exceeds the increase in fair market value to the property attributable to the capital expenditure. 33) 33) Expenditures incurred in removing structural barriers in the home of a physically handicapped individual are deductible only to the extent the costs exceed the increase in fair market value to the property attributable to the capital expenditure. 34) need and availability of medical care, the entire cost of lodging and meals is considered qualified medical expenditures. 34) If the principal reason for a taxpayer's presence in an institution (eg, a nursing home) is the LTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. $1,500 for doctor bills for Van's son who is claimed as a dependent by Van's former spouse $300 for Van's eyeglasses. $900 for Van's dental work. $3,800 for Van's face lift. Van, a newscaster, is worried about the wrinkles around his eyes. 35) Van pays the following medical expenses this year . . D) $2,400 How much can Van include on his return as qualifiecd medical expenses before limitation? C) $6,500 B) $1,200 A)$2,700