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1. Which of the following is a true statement? a. Expenses associated with a hobby are never deductible. b. The deductibility of an activity's expenses
1. Which of the following is a true statement? a. Expenses associated with a "hobby" are never deductible. b. The deductibility of an activity's expenses in excess of revenues depends upon whether the activity is primarily profit-motivated or a hobby as determined by facts and circumstances. c. Taxpayers engaged in a "hobby" are always presumed to be motivated by profit. d. The regulations do not provide any guidance for determining whether an activity is profit motivated. e. All of these are true.
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