Marsha Brady, a lawyer, whose filing status is single and has no dependents, operates a small pottery
Question:
Marsha Brady, a lawyer, whose filing status is single and has no dependents, operates a small pottery business in her spare time. During 2020, she reported the following income and expenses from this activity that is classified as a hobby:
Revenue from sale of pottery $ 7,900
Depreciation on potter's wheel (3,650)
Property taxes on her pottery shed (3,800)
Supplies used such as clay, etc. (2,300)
In addition, she had salary of $85,000 and itemized deductions, not including any listed above, of $10,300.
- a). What is the amount of Marsha’s AGI in 2020?
- b). What is the amount of Marsha’s taxable income in 2020 (before any qualified business income deduction)?
Essentials of Federal Taxation 2019
ISBN: 9781260190045
10th edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver