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Hobby. Alberta very much enjoys oil painting, an avocation that she took up 2 years ago. This year, she spent $2,000 on painting lessons, $1,800
Hobby. Alberta very much enjoys oil painting, an avocation that she took up 2 years ago. This year, she spent $2,000 on painting lessons, $1,800 on supplies and $1,500 on business advice. This year, she sold her first painting: a landscape for $150. She claims that she intends to earn profits from painting and estimates she will be profitable within the next 4 years. As preparer of her tax return, you believe her but are looking for additional evidence of her intent to profit before you sign a return in which she claims her expenses on a Schedule C. Which of the following facts are helpful? (Choose all that apply.) She hired a reputed art gallery owner as a business advisor She painted only when she could find time in her busy schedule as an advertising executive She kept detailed records of her expenses
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