Question

Which of the following is not relevant in determining whether an activity is profit seeking or a hobby? a. Whether the activi
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Answer #1

Solution:

Following are the relevant factors in determining  whether an activity is profit-seeking or a hobby:

a. The time and effort expended.
b. Whether the activity is enjoyed by the taxpayer.
c. The relationship of profits earned and losses incurred.
d. The expertise of the taxpayers or their advisers.

Hence option e "All of the above are relevant factors." is correct.

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