For a taxpayer to be engaged in a trade or business, the activity must meet all of th

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• Every time you try to answer a question that asks why, you engage in the process of causal analysis--you attempt to determine a cause or series of causes for a particular effect. When you try to answer a question that what if, you attempt to determine what effect will result from a particular cause. You will have frequent opportunity to use cause- and-effect analysis in the writing that you will do in college. For example, in history you might be asked to determine the causes of the Seven Day War between Egypt and Israel. In political science you might be asked to determine the reasons why Ronald Reagan won the 1984 Presidential election. And in sociology you might be asked to predict the effect that changes in Social Security legislation would have on senior citizens.

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