Question

Which of the following is not deductible in 2018?

a.Expenses incurred associated with investments in stocks and bonds.
b.Moving expenses in excess of reimbursement.
c.Tax return preparation fees of an individual.
d.Allowable hobby expenses in excess of hobby income.
e.All of these choices are correct.

Answer 1

Allowable hobby expenses in excess of hobby income is not deductible in 2018.

Option - d

Explanation:

If you have a hobby sometimes it can make you profit and sometimes it can also cost you money. Tax breaks on hobby are less beneficial than business. When you start earning money from your hobby you are charged tax. You can deduct your tax by reducing your hobby costs.

Or else you can turn your hobby into a business this will reduce even more tax. You can only reduce costs up to the money you make on the hobby.