for an activity to be treated as a trade or business, which of the following is required:
a. Regular and continual effort designed to seek profit
b. No more than intermittent effort toward the activity
c. Organization as a corporation or partnership
d. Always generate a profit
For an activity to be treated as a trade or business, regular and continual efoort designed to seek profit is the one which is the most important requirement. All other options like always generate profit, organization as a partnership or corporation, no more than intermittent effort toward the activity are not the required for an activity to be considered as trade or business.
Hence, option A is the correct answer.
SUMMARY:
Regular and continual effort designed to seek profit tells that an activity to treat whether consider for trade or business.
Hence, option A is the correct answer.
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