Willy pursued a hobby of making bedspreads in his spare time. His AGI before considering...
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Accounting
Willy pursued a hobby of making bedspreads in his spare time. His AGI before considering the hobby is $38,000. During the year he sold the bedspreads for $10,000. He incurred expenses as follows:
Supplies $4,000
Interest on loan to get business started 500
Advertising 6,500
Assuming that the activity is deemed a hobby, how should Willy report these items on his tax return?
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