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:

Extrinsic

Relating to external factors or rewards that motivate behavior, such as money, grades, or recognition, as opposed to intrinsic motivation which comes from within the individual.

Flextime

A flexible work schedule arrangement that allows employees to alter their start and end times, typically to accommodate personal needs and improve work-life balance.

Specified Limits

Predetermined boundaries or parameters that define acceptable levels of variation for process outputs, quality standards, or other measurable factors.

Self-actualization

The attainment or realization of personal skills and potential, regarded as a basic impulse or demand in everyone.