If an Owner Participates for More Than 500 Hours in a Bicycle

question 62

True/False

If an owner participates for more than 500 hours in a bicycle rental activity located at a beach resort, any loss from that activity is treated as an active loss that can offset active income.

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Definitions:

Real Defenses

Legitimate legal defenses that can be used to nullify a contract or claim, regardless of its apparent validity.

Lack of Consideration

A situation in contract law where there is an absence of a promise, act, or value exchange, rendering the contract unenforceable.

Fraud in the Inducement

A type of fraud involving false representations that lead another to enter into an agreement or transaction.

Breach of Contract

The violation of any agreed-upon terms and conditions in a binding contract.