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Calculate the net income includible in taxable income for the following hobby in 2019: Income $23,000...

Calculate the net income includible in taxable income for the following hobby in 2019:

Income $23,000

Mortgage interest and property taxes allocable to hobby 12,000

Depreciation 4,000

Supplies and fees 7,000

Telephone for hobby 3,000

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Answer #1

Calculation for above question-

A. Income in 2018 = $23,000

Less :- Deduction Allowed Item Wise

1. Mortgage Interest and property taxes : $12000

2. Supplies and Fees : $7000

3. Telephone : $3000

4. Depreciation : $1000

Note : Depreciation limits only as follows:-

($23000 - $12000 - $7000 - $3000 = $1000)

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B. Total Deduction as above = ($23,000)

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C. Therefore, net income includible in taxable income for the following hobby in 2019 = $ 0

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