If an Activity Is Characterized as a Hobby,expenses Are Deductible

question 42

True/False

If an activity is characterized as a hobby,expenses are deductible only to the extent of income from the hobby,subject to certain ordering rules.

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Definitions:

Life Insurance

A contract between an insurer and an insured individual that promises payment of a death benefit to designated beneficiaries upon the insured's death.

Contracts

Legally binding agreements between two or more parties that are enforceable by law.

Enforceable

Capable of being imposed or upheld by a court of law or other authority.

Minors

Individuals who are under the age of legal adulthood and are therefore subject to certain legal protections and restrictions.