Which of the Following Factors Are Used to Aid in Determining

question 62

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 taxpayer's financial status.
II.Elements of personal pleasure derived from the activity.
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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.

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Definitions:

Spanish Settlement

A community or colony established by Spaniards in foreign territories during their period of exploration and colonization.

Jamestown

The first permanent English settlement in North America, established in Virginia in 1607.

St. Augustine

A historic city in Florida known for its Spanish colonial architecture as well as being an influential figure in Christian theology.

New World

Historically, a term referring to the Western Hemisphere, including the continents of North and South America, discovered by European explorers.