Question: * * * * * * Scenario 1 : Hobby Loss vs . Business, with a Side of Self - Employment Sarah is a photographer
Scenario : Hobby Loss vs Business, with a Side of SelfEmployment
Sarah is a photographer with the following incomeexpenses for the year:
Photography revenue: $
Photography expenses: $
Wages from an unrelated job: $
Interest and Dividend Income: $
Itemized Deductions: $
Questions:
Can Sarah deduct the full $ 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 selfemployment tax?
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