Pierre makes birdhouses in his spare time. Be earned $4,800 selling the birdhouses during the year and incurred expenses as follows:

Supplies……………………………………………….. $3,500

Depreciation on tools……………………………….9/5

Booth rental at craft fairs……........................300

Vendor registration fee for art festival……..100

Total ……………………………………………………….$4,875

His AGI, without considering the effect of the sales of the birdhouses is $31,000. if an amount is zero, enter "0".

Calculate the following if the activity is:

A hobby:

AG1 $________

Deductible expenses $________

A business:

AGI $________

Deductible expenses $________

Answer rating: 100% (QA)

Hobby expenses are not deductible ... View the full answer