Alex, who is single, conducts an activity in 2021 that is appropriately classified as a hobby. The amount of income that Alex must report and the amount of the expenses he is permitted to deduct are:
An activity or business is classified as hobby :
- The owner of the business is not making profit from the business
- When their is no proof as to whether the business owner is making profit
- When the owner does not intend to make profit from the business etc
Based on the given information the revenues or income amount of $18,000 will be the amount that will be reported by Alex as part of the gross income.
While the expenses or property taxed amount of $3,000 is deductible because the deductions are itemized deductions.
Inconclusion Alex, who is single, conducts an activity in 2021 that is appropriately classified as a hobby. The amount of income that Alex must report and the amount of the expenses he is permitted to deduct are:
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The value of an asset is determined by discounting the future cash flows generated by the assets using the DISCOUNTED CASH FLOW ANALYSIS. Dis counted cash flow analysis is used to value projects, assets or companies using the concept of the time value of money. This method is used to determine the attractiveness of an investment.
Answer:
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Answer:
Special clothing and uniform involves only the clothes that are required by work specifics. General clothing such as jeans or work shirt does not belong to this category. Also, the laundry for general clothing is also not covered.
Calculations :
Cooper's uniforms during the year = $410
Cooper's laundry expenses for the uniforms = $82 + $62 for altering = $144
Brandy's safety glasses and safety shows when working = $80
Therefore, the total deduction is
= $410 + $144 + $80
= $634