With Respect to the Deduction for Hobby Expenses, the Taxpayer's

question 21

True/False

With respect to the deduction for hobby expenses, the taxpayer's expectation of profit need not be considered reasonable in order for the expense to be deductible.

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Definitions:

Discount Rate

The rate applied in discounted cash flow analysis for the assessment of the current value of future expected cash flows.

Present Value

Today's valuation of a future money sum or sequence of cash payments, given a specific rate of return.

Received

Refers to the act of obtaining or taking possession of something, often used in financial transactions.

Graduation

The process of receiving or conferring an academic degree or the ceremony that is sometimes associated, where students become graduates.