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:

Perceptual Set

A tendency to perceive or notice some aspects of the available sensory data and ignore others, influenced by expectation or prior experience.

Facial Image

A visual representation of a person's face, often used for identification purposes.

Masking Stimulus

A noise or signal used in sensory experiments to interfere with or "mask" the perception of another stimulus, to study sensory thresholds and attention.

Weber's Law

A principle in psychology that states the smallest change in a stimulus that can be detected is a constant proportion of the original stimulus.