Question

a. Rachel, a lawyer, age 36, not blind, a filing status of single, operates a small pottery business in her spare time. During 2019, she reported the following income and expenses from this activity which is classified as a hobby:

Revenue from sale of pottery                                          $   9,000

                                               Depreciation on potter's wheel                                                     3,700

Property taxes on her pottery shed                                                                                       4,200

Supplies used such as clay, etc.                                              6,300

        In addition, she had salary of $85,000 and itemized deductions, not including any listed above, of $10,300. What is the amount of Rachel’s taxable income in 2019?

Answer 1

Date: I Computation of Rachel's Taxable in 2019 income Revenue From Sale of pottery (-Depreciation (allowable ). (-) Supplies used - t Salary income 9,000 (3700) +6300) det 85000 sme 90,300 (10,300) & Less: It Deductions Taxable income $80,000 is $80,000. 202072725 12:02