If an Activity Produces a Profit for at Least Two

question 79

True/False

If an activity produces a profit for at least two years during a consecutive five-year period,the burden of proof shifts to the IRS to show that the activity is not profit-motivated.

---

Definitions:

Analog Signals

Signals that vary continuously over time and can represent variables such as temperature, pressure, or velocity.

Two States

Typically refers to a system or component that has two distinct conditions, states, or values, commonly seen in digital or binary systems.

Volatile Memory

A memory structure that loses its information whenever power is removed. Volatile memories require a battery backup to ensure memory retention during power outages.

Programmed Contents

The specific information or instructions that have been programmed into a system, device, or application.