As a hobby, Salome creates and sells oil paintings. During the current year, her sales total $8,000.

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As a hobby, Salome creates and sells oil paintings. During the current year, her sales total $8,000. How is the tax treatment of her hobby different from the treatment of a trade or business, if
a. Her business expenses total $5,600?

b. Her business expenses total $10,000?

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Concepts In Federal Taxation 2022

ISBN: 9780357515785

29th Edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

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Question Posted: Sep 06, 2023 08:43 AM

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As a hobby, Salome creates and sells oil paintings. During the current year, her sales total $8,000.

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a If Salomes activity is a hobby her sales must be reported as gross inco...View the full answer

Concepts In Federal Taxation 2022

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