The Tax Advantage for Sole Proprietorships Does Not Last Forever

question 66

Multiple Choice

The tax advantage for sole proprietorships does not last forever.The businessperson must make money in order to be considered a business.Money must be made for how many years in order to be considered a business and not a hobby by the IRS?

• A) Two out of five years
• B) Three out of five years
• C) Four out of five years
• D) Four out of six years

---

Definitions:

State-Dependent Memory

The phenomenon where information learned in a particular state or context is better recalled when in that same state or context.

Priming

A psychological effect whereby exposure to one stimulus influences the response to a subsequent stimulus, without conscious guidance or intention.

False Memories

An inaccurate or distorted recollection of an event that feels very real to the person remembering it.

Imagination Inflation

A phenomenon where vividly imagining an event can increase confidence that the event actually occurred in the past.