Which of the Following Factors Absolutely Must Be Present for an Activity

question 37

Multiple Choice

Which of the following factors absolutely must be present for an activity to be considered a trade or business for tax purposes?

• A)The activity is profitable most of the time.
• B)Taxpayer has experience in the activity.
• C)Taxpayer has a mailing address and phone number for his business that is different from his personal address and phone number.
• D)Taxpayer has a profit motive for engaging in the activity.
• E)All of the above factors must be present to have a trade or business activity.

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Definitions:

Groups

Collections of individuals who either share common interests or have distinct roles within a defined structure, interacting on a regular basis.

Expressive Needs

Needs for intimacy, companionship, and emotional support.

Primary Groups

Small, close-knit, and usually long-term social groups in which members share a strong sense of identity, belonging, and emotional ties, often including family and close friends.

Support

Assistance, encouragement, or other resources provided by individuals or institutions to help someone cope with difficulties or achieve goals.