Jim, the vice president of an oil company, has AGI of $80,000 and itemized deductions, not including any listed above, of $5,000.. He decides to pursue painting in his spare time. During the current year, Jim incurs the following expenses:

During the current year, Jim incurs the following expenses:

Depreciation on materials (3,900)

Property taxes on Jims art space (2,500)

Supplies used (5,300)

During the year, Jim sold paintings for a total of $8,660.

If the activity is held to be a hobby, what would Jim taxable income be in 2017?

If the activity is a trade or business, what would Jim taxable income be in 2017?