Which of the Following Factors Are Considered by the IRS

question 36

Multiple Choice

Which of the following factors are considered by the IRS in evaluating whether an activity is classified as a business or a hobby?

• A)The expertise of the taxpayer
• B)The time and effort expended by the taxpayer
• C)Financial status of the taxpayer
• D)Income and loss history from the activity
• E)All of the above

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Definitions:

Utilitarian Notion

A concept in ethics that actions are right if they are useful or for the benefit of a majority, focusing on the outcome of achieving the greatest happiness for the greatest number.

Water Purification

The process of removing undesirable chemicals, biological contaminants, suspended solids, and gases from water to make it safe for human consumption and use.

Corporate Philanthropy

The act of a corporation donating some of its profits or resources to charitable causes as part of its corporate social responsibility.

Social Impact

The effect an individual's actions or an organization's activities have on the well-being of the community.