Mary owns a small greenhouse she grows all sorts of vegetables in. She sells what she can
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Mary owns a small greenhouse she grows all sorts of vegetables in. She sells what she can at a small farmer’s market during the summer, and uses the unsold items for family consumption. The IRS has designated this activity as a hobby. Please answer the following questions surrounding Mary’s greenhouse:
- Speculate why you think the IRS designated Mary’s greenhouse activity as a hobby?
- What does the hobby designation mean for Mary’s taxes regarding income and expenses for the greenhouse?
- Is there anything Mary can do to make the IRS understand that the greenhouse is indeed a business and not a hobby?
Related Book For
Basic Marketing Research
ISBN: 978-1133188544
8th edition
Authors: Tom J. Brown, Tracy A. Suter, Gilbert A. Churchill
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