Which of the following factors are considered by the IRS in evaluating whether an activity is classified as a business or a hobby?
A)The expertise of the taxpayer
B)The time and effort expended by the taxpayer
C)Financial status of the taxpayer
D)Income and loss history from the activity
E)All of these

Question

Quizplus · Accepted Answer

All of these factors are considered by the IRS when evaluating whether an activity is classified as a business or a hobby. The taxpayer's expertise, time and effort expended, financial status, and income and loss history are all taken into account to determine whether the activity is engaged in for profit or for personal enjoyment.

Which of the Following Factors Are Considered by the IRS