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:

Psychologists

Professionals specializing in the study of the mind and behavior, working in fields such as clinical, counseling, and cognitive psychology.

Whites

Typically refers to individuals of European descent; however, the definition can vary by context and geographical location.

Alcoholics

People who suffer from alcoholism, a chronic disease characterized by uncontrolled drinking and obsession with alcohol.

Psychologically Vulnerable

Individuals who are more likely to suffer from psychological distress or disorders due to their mental health state or external circumstances.