Generally, for an activity to be treated as a trade or business, which of the following is required:

Question

Generally, for an activity to be treated as a trade or business, which of the following is required:​

Quizplus · Accepted Answer

In order for an activity to be treated as a trade or business, it must involve regular and continual effort directed towards generating a profit. It is not necessary for the activity to always generate a profit, and the organization of the activity as a corporation or partnership is not a requirement. The level of effort put towards the activity also does not have to be intermittent, it must be regular and continual.

Generally, for an Activity to Be Treated as a Trade