Deriving a profit in three consecutive years is not irrefutable evidence that an activity is profit seeking and not a hobby.

Question

Quizplus · Accepted Answer

Deriving a profit in three consecutive years may be a factor in determining whether an activity is considered a hobby or a profit-seeking activity, but it is not the only determining factor. Other factors, such as the taxpayer's intent and the extent of their efforts to make a profit, will also be taken into account. Therefore, it is not irrefutable evidence that an activity is profit seeking and not a hobby.

Deriving a Profit in Three Consecutive Years Is Not Irrefutable