Why Does the Law Need to Be Interpreted

question 68

Multiple Choice

Why does the law need to be interpreted?

• A)Legal writing is usually in Latin.
• B)Legal writing is deliberately designed so that it cannot be understood by persons other than legal professionals.
• C)Legal writing is often difficult to read and understand because it is frequently very formal, full of legal terminology and sometimes uses out-dated vocabulary.
• D)Legal writing is always concise, simple, organised, clear and unambiguous.

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Definitions:

Material Participant

An individual who is actively involved on a regular, continuous, and substantial basis in the operations of a business, affecting their tax treatment of losses.

Form 6198

An IRS form used by taxpayers to determine the amount of loss from an at-risk activity that is deductible.

IRC

The Internal Revenue Code, which is the comprehensive set of tax laws in the United States governing federal tax obligations.

Active Income/Loss

Income or losses generated from direct business activities or employment, as opposed to passive income from investments.