Which of the Following Is Not a Factor That the IRS

question 28

Multiple Choice

Which of the following is not a factor that the IRS looks at to determine if a loss is from a hobby or from a business?

• A)Whether the activity is owned and run by the taxpayer alone
• B)The history of the income and loss from the activity
• C)Whether the business has elements of personal recreation
• D)The financial status of the taxpayer

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Definitions:

FICA-OASDI

The Federal Insurance Contributions Act Old-Age, Survivors, and Disability Insurance program, which funds Social Security and is paid for by payroll taxes.

FUTA

An abbreviation for the Federal Unemployment Tax Act, which imposes a payroll tax on businesses to fund state workforce agencies.

SUTA

State Unemployment Tax Act - a tax that U.S. employers pay to their state to fund unemployment benefits.

FICA-OASDI

Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance; a payroll tax that funds Social Security and Medicare.