Edward has always enjoyed sailing. In 2017, he entered several regattas and mana

Question

Edward has always enjoyed sailing. In 2017, he entered several regattas and managed to win prize money of 1,700. His expenses associated with the regattas exceed 23,000.00. which of the following stement is correct? a) Edward may absolutely not deduct any of these expenses.B) Edward should only deduct 50% of these expenses.C) Edward's expenses far exceed the winnings. Therefore, he needn't worry about reporting the winnings on his 2017 income tax.D) Since Edward does not carry on this activity to make a profit, he cannot use a loss from the activity to other income

Explanation / Answer

Edward has always enjoyed sailing. In 2017, he entered several regattas and managed to win prize money of 1,700. His expenses associated with the regattas exceed 23,000.00. which of the following stement is correct? a) Edward may absolutely not deduct any of these expenses.B) Edward should only deduct 50% of these expenses.C) Edward's expenses far exceed the winnings. Therefore, he needn't worry about reporting the winnings on his 2017 income tax.D) Since Edward does not carry on this activity to make a profit, he cannot use a loss from the activity to other income

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