Which of the Following Factors Absolutely Must Be Present for an Activity

question 37

Multiple Choice

Which of the following factors absolutely must be present for an activity to be considered a trade or business for tax purposes?

• A)The activity is profitable most of the time.
• B)Taxpayer has experience in the activity.
• C)Taxpayer has a mailing address and phone number for his business that is different from his personal address and phone number.
• D)Taxpayer has a profit motive for engaging in the activity.
• E)All of the above factors must be present to have a trade or business activity.

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Definitions:

Epithelium

Layers of cells covering internal or external surfaces of the body, serving as a protective barrier and involved in processes such as absorption and secretion.

Epidermis

The outermost layer of skin that provides a waterproof barrier and creates our skin tone, serving as the body's primary defense against the environment.

Stratum Lucidum

Clear layer of the epidermis found in thick skin between the stratum granulosum and the stratum corneum.

Epidermis

The outermost layer of skin, providing a waterproof barrier and creating skin tone.