### Question
How is the "activity not engaged in for profit" defined?


### Answer
The term **activity not engaged in for profit** is defined in *26 U.S.C. § 183* as follows -

> any activity other than one with respect to which deductions are allowable for the taxable year under section 162 or under paragraph (1) or (2) of section 212

#### Citation:
  - *26 U.S.C. § 183*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

