Solved

If a Taxpayer Makes a Profit in Three of the Five

Question 121

True/False

If a taxpayer makes a profit in three of the five consecutive years ending with the taxable year,the burden of proof is on the IRS to prove the activity is a hobby rather than a trade or business.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q10: Which of the following statements is correct

Q58: Susan is a sales representative for a

Q78: Generally, a closely held family corporation is

Q85: If a vacation home is classified as

Q116: Bridgett's son,Amos,is $4,500 in arrears on his

Q118: Calvin opened his dental practice (a sole

Q119: Which of the following expenses is classified

Q120: In a related party transaction where realized

Q125: Fines paid in the course of carrying

Q126: Camille,a calendar year taxpayer,rented a building from