ZuoTi.Pro
Question

Income $18,000 Interest and property taxes allocable to hobby $ 8,000 Depreciation $ 4,000 Supplies and fees $ 7,000 In order

Amount of allowable depreciation deduction? Net income or loss from hobby? If this activity were a business instead of a hobby, what would be the net income/ loss?
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

SOLUTION:

1. NO DEDUCTION SHALL BE ALOWED

2. DEDUCTIONS IF THIS WERE A BUSINESS ACTIVITY

a) INTEREST AND PROPERTY TAXES $8000

b) DEPRECIATION $4000

c) SUPPLIES AND FEES $7000

TOTAL : $19000

NET INCOME/(LOSS) = $1000

0 0
Add a comment
Know the answer?
Add Answer to:
Amount of allowable depreciation deduction? Net income or loss from hobby? If this activity were a...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Calculate the net income includible in taxable income for the following hobby in 2019: Income $23,000...

    Calculate the net income includible in taxable income for the following hobby in 2019: Income $23,000 Mortgage interest and property taxes allocable to hobby 12,000 Depreciation 4,000 Supplies and fees 7,000 Telephone for hobby 3,000

  • Utilities and maintenance deductible is? Deductible depreciation is? Net income from activity? If it’s approach is...

    Utilities and maintenance deductible is? Deductible depreciation is? Net income from activity? If it’s approach is used for deduction, what is the net income from activity? What is the order of deduction? this is for the year ending in 2019. also i meant to put if the IRS aproach is used for the deductions what would be the net income from the activity. 2 points Saved QUESTION 49 B. During the year Martin rented his vacation home for three months...

  • Problem 11-37 (LO. 7) Alex, who is single, conducts an activity in 2019 that is classified as a hobby. The activity pr...

    Problem 11-37 (LO. 7) Alex, who is single, conducts an activity in 2019 that is classified as a hobby. The activity produces the following revenues and expenses. Revenue Property taxes $18,000 3,000 4,500 2,000 Materials and supplies Utilities Advertising 5,000 Insurance 750 4,000 Depreciation Without regard to this hobby, Alex's AGI is $42,000. Determine the amount of gross income that Alex must report and the amount of expenses he is permitted to deduct. Assume Alex itemizes his deductions. Reportable income:...

  • Alex, who is single, conducts an activity in 2017 that is appropriately classified as a hobby....

    Alex, who is single, conducts an activity in 2017 that is appropriately classified as a hobby. The activity produces the following revenues and expenses: Revenue $18,000 Property taxes 3,000 Materials and supplies 4,500 Utilities 2,000 Advertising 5,000 Insurance 750 Depreciation 4,000 Without regard to this activity, Alex's AGI is $42,000 and his personal exemption is $4,050. Complete the following statements regarding the treatment of the hobby activities. Alex reports on page 1 of the Form 1040. Excluding the property taxes,...

  • Alex, who is single, conducts an activity in 2020 that is appropriately classified as a hobby....

    Alex, who is single, conducts an activity in 2020 that is appropriately classified as a hobby. The activity produces the following revenues and expenses: Revenue $18,000 Property taxes 3,000 Materials and supplies 4,500 Utilities 2,000 Advertising 5,000 Insurance 750 Depreciation 4,000 Without regard to this activity, Alex's AGI is $42,000. Determine the amount of income Alex must report and the amount of the expenses he is permitted to deduct. Assume Alex itemizes his deductions. Reportable income: $ Deductible expenses: $

  • The following cases makes different assumptions with respect to the amounts of income and deductions of...

    The following cases makes different assumptions with respect to the amounts of income and deductions of Mr. Michel Daigle for the current taxation year under the various subdivisions of Division B of the Income Tax, and the last two previous years’ taxes payable: Case 2-A Employment Income $35,000 Income (Loss) From Business (10,000) Income From Property 12,000 Taxable Capital Gains 42,000 Allowable Capital Losses (18,000) Subdivision E Deductions (Spousal Support) (4,000) Taxable Income Previous Years: 2016: $10,000 2017: nil Case...

  • Problem 6-45 (LO. 3) Alex, who is single, conducts an activity in 2020 that is appropriately...

    Problem 6-45 (LO. 3) Alex, who is single, conducts an activity in 2020 that is appropriately classified as a hobby. The activity produces the following revenues and expenses: Revenue $18,000 Property taxes 3,000 Materials and supplies 4,500 Utilities 2,000 Advertising 5,000 Insurance 750 Depreciation 4,000 Without regard to this activity, Alex's AGI is $42,000. Determine the amount of income Alex must report and the amount of the expenses he is permitted to deduct. Assume Alex itemizes his deductions. Reportable income:...

  • 43. Priscella pursued a hobby of making bedspread ponued a hobby of making heeads in ber e Her AG before considerin...

    43. Priscella pursued a hobby of making bedspread ponued a hobby of making heeads in ber e Her AG before considering the hobby is $40.000 During 2019 she sold the bedspreads for $10,000. She incurred expenses as follows Supplies Interest on loan to get business started Advertising $4,000 500 6,500 Assuming that the activity is deemed a hobby, how should she report these items on her tax return a. Include $10,000 in income and deduct $11,000 for AGI b. Ignore...

  • Problem 6-45 (LO. 3) Alex, who is single, conducts an activity in 2020 that is appropriately...

    Problem 6-45 (LO. 3) Alex, who is single, conducts an activity in 2020 that is appropriately classified as a hobby. The activity produces the following revenues and expenses: Revenue $18,000 Property taxes 3,000 Materials and supplies 4,500 Utilities 2,000 Advertising 5,000 Insurance 750 Depreciation 4,000 Without regard to this activity, Alex's AGI is $42,000. Determine the amount of income Alex must report and the amount of the expenses he is permitted to deduct. Assume Alex itemizes his deductions. Reportable income:...

  • The following four Cases make different assumptions with respect to the amounts of income and deductions...

    The following four Cases make different assumptions with respect to the amounts of income and deductions of Mr. John for the current year in India: Case I Case II Case III Case IV Employment Income 35,000 33,000 16,000 28,000 Income (Loss) From Business (10,000) (39,000) 22,000 15,000 Income (Loss) From Property 12,000 14,000 (21,000) (36,000) Taxable Capital Gains 42,000 36,000 32,000 21,000 Allowable Capital Losses (18,000)    (42,000) (69,000) (27,000) Subdivision e Deductions (80C) (4,000)    (7,000) (5,000) (11,000) a....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT