What do ordinary, necessary, and reasonable mean in relation to business expenses? - What is the difference between personal and real property? Give (2) examples of each. - What factors determine whether an activity is a business is a hobby? - Jack recently purchased a small fishing boat. He took some friends out fishing, and did not charge them anything. As a result, he thinks he can report a charter fishing business on his tax return and deduct losses related to the cost of his boat. Is Jack right? Why or Why not?