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 the above

Question

Quizplus · Accepted Answer

All of the above factors are considered by the IRS in evaluating whether an activity is classified as a business or a hobby. The expertise, time and effort expended, financial status, and income and loss history are all important factors in determining whether the taxpayer is engaged in a business activity with the intent to make a profit, or simply pursuing a leisure activity.

Which of the Following Factors Are Considered by the IRS