A Hobby Activity Can Result in All of the Hobby

question 73

True/False

A hobby activity can result in all of the hobby income being included in AGI and no deductions being allowed.

---

Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

Petty Cash

Petty cash is a small amount of cash on hand used for covering minor and unplanned expenses in an organization.

Postage Stamps

Small pieces of paper issued by postal authorities that, when attached to mail, indicate the prepaid postage for its delivery.

Pass Key Access

A security mechanism that allows entry or access to a restricted area through the use of a physical or digital key.