Question: A taxpayer suffered a 20 000 capital loss early this
A taxpayer suffered a $ 20,000 capital loss early this year (from selling some securities) and is considering two alternatives for generating extra income. The first alternative is to find part time employment at the local university teaching courses on taxes. The second alternative is to purchase a fixer upper bungalow and spend his evenings and weekends cleaning, repairing, and painting it, then sell the fixed up property. The taxpayer estimates that his income before taxes would be about $ 45,000 from either alternative. Evaluate the taxpayer’s options.
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