If an Activity Is Considered a Hobby,which of the Following

question 56

Multiple Choice

If an activity is considered a hobby,which of the following is true?

• A)None of the expenses connected with the activity are deductible.
• B)None of the income connected with the activity is included in income.
• C)The deductible expenses connected with the activity are limited to the income from the activity.
• D)The IRS has the burden to prove an activity is a hobby.

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Definitions:

Poverty Line

The lowest amount of money required to maintain a satisfactory quality of life in a particular country.

U.S. Bureau of the Census

A principal agency of the U.S. Federal Statistical System responsible for producing data about the American people and economy.

Family Size

The number of individuals in a household related by blood, marriage, or adoption.

Poverty Line

The minimum level of income deemed necessary to achieve an adequate standard of living in a given country, helping to identify individuals and households in need.