Calculate the Net Income Includible in Taxable Income for the Following

question 77

Essay

Calculate the net income includible in taxable income for the following hobby in 2019: $$\begin{array} { l r } \text { Income } & \$ 23,000 \\\text { Mortgage interest and property taxes allocable to hobby } & 12,000 \\\text { Depreciation } & 4,000 \\\text { Supplies and fees } & 7,000 \\\text { Telephone for hobby } & 3,000\end{array}$$

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Definitions:

Professional Photographer

An individual who earns their living through the art of taking photographs, often with a specific area of expertise such as weddings, portraits, or commercial work.

Trade Secret Violation

Unauthorized use or disclosure of a company's proprietary information without permission, which is illegal and unethical.

Unlawful Appropriation

Unlawful Appropriation refers to the illegal taking or use of another's property or funds without permission, often linked to embezzlement or theft.

Secret Formula

A proprietary methodology or recipe that is kept confidential and provides a competitive advantage.