For the years 2011 through 2015 (inclusive)Max,a surgeon,has been involved in bowling competitions.Only in 2014 and 2015 did his revenue exceed the expenses from the activity.Which statement is correct?

Question

Quizplus · Accepted Answer

The IRS presumes an activity is a hobby if it hasn't made a profit in at least 3 of the last 5 years. Max's activity only made a profit in 2014 and 2015, so it is presumed to be a hobby, but he can provide evidence to prove it is a business.

For the Years 2011 Through 2015 (Inclusive)Max,a Surgeon,has Been Involved