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:

Aaron Beck

An American psychiatrist who is known as the father of cognitive therapy, focusing on changing clients' patterns of thinking to reduce negative emotions.

Bipolar Disorder

A mental health condition characterized by extreme mood swings that include emotional highs (mania or hypomania) and lows (depression).

Depressive Symptoms

Manifestations of depression, including persistent sadness, lack of interest, changes in appetite or sleep, and feelings of worthlessness.

Manic Symptoms

Features of mania, including elevated mood, increased activity or energy, and often risky behavior, observed in disorders like bipolar disorder.