Alex, who is single, conducts an activity in 2017 that is appropriately classified as a hobby.
The activity produces the following revenues and expenses: Revenue $18,000 Property taxes 3,000 Materials and supplies 4,500 Utilities 2,000 Advertising 5,000 Insurance 750 Depreciation 4,000 Without regard to this activity, Alex's AGI is $42,000 and his personal exemption is $4,050.
Complete the following statements regarding the treatment of the hobby activities.
*Alex reports ______________ on page 1 of the Form 1040.
Excluding the property taxes, his total deductible expenses (before any AGI limitations) is limited to $_____________.
Alex's reportable net income from the hobby on his tax return is $__________ and his overall taxable income is $__________ .