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Jourdan uses his home to pursue his passion for Art Sculpting. In each of the past...

Jourdan uses his home to pursue his passion for Art Sculpting. In each of the past 4-years, he has generated a net loss. This year, his gross income totals 8,000. However, he utilized 12% of his home and incurred the following expenses:

Mortgage interest on his home - 12,000

Property taxes on his home - 9, 000

Supplies - 3, 000

Utilities total on home - 2, 000

Storage fees for artwork - 1, 500

Depreciation on 12% of his home - 1, 950

Required:

a. Calculate the amount of depreciation expense that Jourdan may deduct if this activity is treated as a hobby.

b. Calculate Net Income/Loss that Jourdan may deduct if the activity is treated as a business.

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ekkarill92 answered 1 year ago
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