For the years 2012 through 2016 (inclusive) Max,a surgeon,has been involved in bowling competitions.Only in 2015 and 2016 did his revenue exceed the expenses from the activity.Which statement is correct?
A) The activity is a business.The IRS cannot prove it is a hobby.
B) The activity is a hobby.Max cannot prove it is a business.
C) The activity is presumed to be a business.However,the IRS may prove it is a hobby.
D) The activity is presumed to be a hobby.However,Max may prove it is a business.
Correct Answer:
Verified
Q83: The vacation home limitations of Section 280A
Q97: Victor,a calendar-year taxpayer,owns 100 shares of AB
Q101: Donald sells stock with an adjusted basis
Q104: Expenses attributable to the rental use of
Q115: Sheila sells stock,which has a basis of
Q115: Jason sells stock with an adjusted basis
Q117: Chana purchased 400 shares of Tronco Corporation
Q135: Abigail's hobby is sculpting.During the current year,Abigail
Q481: Diane, a successful accountant with an annual
Q497: Discuss tax planning considerations which a taxpayer
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents