The hobby loss rules can be avoided by an individual taxpayer if the taxpayer can prove that the activity was conducted with the intent to earn a profit. The IRS applies conditions to determine whether an activity is a hobby or not. To choose: The factor not considered by IRS for defining an activity as hobby or not.

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Chapter 3, Problem 23MCQ

To determine

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The hobby loss rules can be avoided by an individual taxpayer if the taxpayer can prove that the activity was conducted with the intent to earn a profit. The IRS applies conditions to determine whether an activity is a hobby or not.

To choose:The factor not considered by IRS for defining an activity as hobby or not.

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