Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Jalen decides to spend spare time pursuing painting. Jalen uses a home studio, comprising 10% of the home's square footage. During the current year, Jalen
Jalen decides to spend spare time pursuing painting. Jalen uses a home studio, comprising 10% of the home's square footage. During the current year, Jalen incurs the following expenses:
Frames | $ 1,800 |
Art supplies | 900 |
Fees paid to models | 4,000 |
Home studio expenses: | |
Total home property taxes | 2,000 |
Total home mortgage interest | 10,000 |
Total home maintenance and utilities | 4,600 |
Calculated depreciation on 10% of home | 500 |
During the year, Jalen sold paintings for a total of $8,660. If the activity is held to be a hobby, how much expense can Jalen deduct?
a.$1,200
b.$4,600
c.$0
d.$500
e.$8,660
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started