Hobby Activity Expenses Are Deductible from AGI to the Extent

question 96

True/False

Hobby activity expenses are deductible from AGI to the extent of hobby income. Such expenses not in excess of hobby income are not subject to the 2%-of-AGI floor.

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Definitions:

Actor-observer Effect

The tendency to attribute one's own actions to external factors while attributing others' actions to their character or disposition.

Self-serving Bias

A cognitive bias where individuals attribute their successes to personal factors and their failures to external factors, often to maintain self-esteem.

Stanford Prison Experiment

A 1971 social psychology experiment that studied the psychological effects of perceived power, focusing on the struggle between prisoners and prison officers.

Social Psychologist

A professional in psychology who studies how social influences affect individual thoughts, feelings, and behaviors.