Question: * * * * * * Scenario 1 : Hobby Loss vs . Business, with a Side of Self - Employment Sarah is a photographer

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Scenario 1: Hobby Loss vs. Business, with a Side of Self-Employment
Sarah is a photographer with the following income/expenses for the year:
Photography revenue: $8,000
Photography expenses: $11,000
Wages from an unrelated job: $55,000
Interest and Dividend Income: $1,000
Itemized Deductions: $18,000
Questions:
Can Sarah deduct the full $3,000 photography loss? Analyze the factors the IRS considers in determining hobby vs. business.
If some of the loss is deductible, where on her tax return would it be reported?
Is the photography income subject to self-employment tax?

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