write my assignment 8544
Hobby expenses- Effect on AGI. C is a successful attorney and stock car racing enthusiast. this year she decided to quit watching the races and start participating. She purchased a car and entered several local races. During the year, she had the following recepits and disbursements related to the racing activities: Race winnings 3000property taxes 2800fuel, supplies , maintenance 1000her AGI exclusive of any items related to the racing activities is 100,000a) Indicate the tax consequences assuming the activity is not considered to be a hobby.b) assuming the activity is treated as hobby, what are the tax consequencesc) assuming the activity is deemed a hobby and property taxes are 4000, what are the tax consequencesd) what is the critical factor in determing whether an activity is a hobby or a businesse) what circumstances suggest the activity is a business rather than a hobby
Hobby expenses- Effect on AGI. C is a successful attorney and stock car racing enthusiast. this year she decided to quit watching the races and start participating. She purchased a car and entered several local races. During the year, she had the following recepits and disbursements related to the racing activities:
Race winnings 3000
property taxes 2800
fuel, supplies , maintenance 1000
her AGI exclusive of any items related to the racing activities is 100,000
a) Indicate the tax consequences assuming the activity is not considered to be a hobby.
b) assuming the activity is treated as hobby, what are the tax consequences
c) assuming the activity is deemed a hobby and property taxes are 4000, what are the tax consequences
d) what is the critical factor in determing whether an activity is a hobby or a business
e) what circumstances suggest the activity is a business rather than a hobby
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