Which of the Following Factors Is Not Used to Determine

question 93

Multiple Choice

Which of the following factors is not used to determine whether an activity is a hobby or a business?

• A)the taxpayer's expertise in the activity
• B)the taxpayer's financial status
• C)the personal pleasure derived from the activity
• D)the success of the taxpayer in other dissimilar activities

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Definitions:

Reasonable Amount

An amount that is fair and moderate, not excessive or extreme.

Irrevocable Offer

A rule that no consideration is necessary when a merchant agrees in writing to hold an offer open for the sale of goods. Also called firm offer.

Reaffirmation

A legal agreement to continue paying a dischargeable debt after bankruptcy, often to retain collateral or maintain a relationship with the creditor.