Which of the following people are currently engaged in a trade or business?
I.Willie devotes 45 hours per week to betting on horse races. Although he intends to win large sums, he has failed to win the big one. He considers his betting activities his job and relies on his meager winnings to support his family.
II.Daryl owns 214 home sites in and around Orlando, Florida. He bought these vacant lots several years ago in hoping that they would appreciate in value so he could sell them at a profit. Because of the recreational activities in the area, the building lots are worth several times his original cost. He is getting the lots ready to sell this year.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

Which of the following people are currently engaged in a trade or business?
I.Willie devotes 45 hours per week to betting on horse races. Although he intends to win large sums, he has failed to win the big one. He considers his betting activities his job and relies on his meager winnings to support his family.
II.Daryl owns 214 home sites in and around Orlando, Florida. He bought these vacant lots several years ago in hoping that they would appreciate in value so he could sell them at a profit. Because of the recreational activities in the area, the building lots are worth several times his original cost. He is getting the lots ready to sell this year.
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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.

Quizplus · Accepted Answer

Statement I describes Willie's activities as a job and a source of income, indicating that he is engaged in a trade or business. Statement II describes Daryl's investment activities, which involve buying and selling property for profit but do not involve running a business or engaging in an ongoing trade. Therefore, only statement I is correct.

Which of the Following People Are Currently Engaged in a Trade