Richere year is a new client. She tells you that during the past year for fun she made quilts and sometimes sold them at local craft fairs. She said she earned about $1750 for doing this. Her tax repair should:

A Report as income on schedule C and assist richere to reconstruct her expenses for any items related to the production of the quilts loose cost and travel to the craft fairs.

B tell her share that because she has no profit motive, the income is not taxable and the expenses are not deductible.

C explain to the hobby loss rules to the Richere and explain that the income should be reported on schedule one, line 8 but as this is a hobby? Any expenses that she has are not deductible.

D advisor Richere the income as reportable and that you are sister to reconstruct her expenses which may be deducted on schedule A, line 16..