Which of the Following Factors Are Used to Aid in Determining

question 11

Multiple Choice

Which of the following factors are used to aid in determining whether an activity that earns income is profit motivated and should be treated as a business or is subject to the hobby loss rules?
I.The amounts of occasional profits, if any.
II.Taxpayer's success in similar activities.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.