Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Priscella pursued a hobby of making bedspreads in her spare time. Her AGI before considering the hobby is $ 4 0 , 0 0 0

Priscella pursued a hobby of making bedspreads in her spare time. Her AGI before considering the hobby is $40,000. During 2022 she sold the bedspreads for $10,000. She incurred expenses as follows:

Supplies $4,000

Assuming that the activity is deemed a hobby, how should she report these items on her tax return?
 

Step by Step Solution

There are 3 Steps involved in it

Step: 1

If Priscellas activity of making bedspreads is considered a hobby rather than a business for tax pur... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud examination

Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma

4th edition

538470844, 978-0538470841

More Books

Students also viewed these Accounting questions