How would you define an activity classified as a hobby vs. a business? What factors might be used to assist a taxpayer in determining whether an activity is a hobby or a business? Matt, our taxpayer, has AGI from other income in the amount of $50,000. Indicate how the income and expenses for the activity below would be included in Matt's taxable income: if a hobby (including an explanation of any limitation of expenses); and if a business. Your answer must include your calculation, a brief explanation of any applicable rules and notes regarding where income and expenses are reported (which schedules)