A trade or business is generally an activity carried on for a livelihood or in good faith to make a profit. The facts and circumstances of each case determine whether an activity is a trade or business. The regularity of activities and transactions and the production of income are important elements; however, making a profit is not essential to being in a trade or business as long as the business has a profit motive. The business does not have to be full-time in order for an individual to be self-employed. Having a parttime business in addition to a regular job may be sufficient for self-employment for IRS purposes.