If an Activity Produces a Profit for at Least Two

question 79

True/False

If an activity produces a profit for at least two years during a consecutive five-year period,the burden of proof shifts to the IRS to show that the activity is not profit-motivated.

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Definitions:

Achievement Test

A type of assessment designed to evaluate a person's knowledge or proficiency in a particular area or field.

General Mental Ability

A term that generally refers to the overall capacity of an individual to understand complex ideas, adapt effectively to the environment, learn from experience, engage in various forms of reasoning, and overcome obstacles through mental effort.

Psychological Tests

Standardized measures designed to assess various aspects of an individual's mental functions and behaviors.

Standardised Measures

Tests or assessment tools that have been normed and validated to ensure consistency and comparability across different individuals or groups.