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.

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Definitions:

United Nations

An international organization founded in 1945 to promote peace, security, and cooperation among countries.

ITQs

Individual Transferable Quotas; a tool used in environmental management and fisheries, setting a total allowable catch to help prevent overfishing.

Sockeye Salmon

A species of salmon found in the Pacific Ocean, notable for its bright red flesh and significant role in both commercial fishing and ecological health.

Market Price

The current price at which a good or service can be bought or sold in the market, determined by the forces of supply and demand.