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Each of the following describes a not for profit activity (hobby) except?

A Mary Kay consultant who deducts travel expenses and whose small customer base was mostly relatives who lived out of town.
a taxpayer who had a model railroad activity and did not keep a separation checking account.
A university research association who had made profits on her research activities in the past and fully expected to do so in the future
a taxpayer who wrote travel while on trips she had planned without consulting a publisher or doing any marketing research

User Raphnguyen
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1 Answer

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Answer:

A Mary Kay consultant who deducts travel expenses and whose small customer base was mostly relatives who lived out of town.

Step-by-step explanation:

A not for profit activity (or hobby) is something that you do simply because you like to do it and generally you should not make a profit from doing it.

A Mary Kay consultant is actually a salesperson whose job is to sell Mary Kay products. Whether she is able to make a profit or not is something different, but selling Mary Kay is actually considered work. Since they are independent consultants, they are considered independent contractors that must file their income taxes.

User Fabienne
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