Detmer is a successful doctor who earned $204,800 in fees this year, but he also
ID: 2444566 • Letter: D
Question
Detmer is a successful doctor who earned $204,800 in fees this year, but he also competes in weekend golf tournaments. Detmer reported the following expenses associated with competing in almost a dozen tournaments:
Transportation to various tournaments $3,450
Lodging $1,890
Entry Fees $ 920
Golf Supplies (balls, tees, ect. ) $ 75
This year Detmer won $5,200 from competing in various golf tournaments. Assuming that Detmer itemizes his deductions, what amount of the golfing expenses are deductible after considering all limitations if the tournament golfing is treated as a hobby activity?
Explanation / Answer
Answer : Deduction $ 1000 as per below working...
Total expenses for tournament
Answer : Deduction $ 1000 as per below working...
Total expenses for tournament
transport $ 3,450 lodging $ 1,890 Entry fee $ 920 golf supplies $ 75 $ 6,335 but deduction limited to revnue $ 5200 Deduction : $ 5200 - $ 4200(2% of AGI) = $ 1000 Detmer's hobby expenses of $6,335 are limited to his revenues ($5,200) and further reduced by $4,200 (2 percent of AGI which is $204,800 + $5,200).Related Questions
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