Mr. D works full-time as a systems analyst for a consulting firm. In addition, he sells plants
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Question:
Mr. D works full-time as a systems analyst for a consulting firm. In addition, he sells plants that he raises himself in a greenhouse attached to his residence. During the past 5 years, the results from raising and selling the plants have been as follows:
Year Net Profit (Loss)
Year 1 $(2,000)
Year 2 (1,200)
Year 3 1,000
Year 4 2,500
Year 5 (500)
Lacking evidence to the contrary, this activity is presumed to be an activity carried on for profit, and the $500 loss in Year 5 can be taken on D’s Year 5 tax return.
A. True.
B. False.
Related Book For
Systems analysis and design
ISBN: 978-0136089162
8th Edition
Authors: kenneth e. kendall, julie e. kendall
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