For the years 2011 through 2015 (inclusive)Mary,a best-selling author,has been involved in operating an antique store.In 2011,2012 and 2013 her revenue exceeded the expenses from the activity.In 2014 and 2015,the antique store generated a loss.Which statement is correct?

Question

Quizplus · Accepted Answer

The activity is presumed to be a business since Mary has had positive revenue in three out of the five years. However, the IRS may still try to prove it is a hobby.

For the Years 2011 Through 2015 (Inclusive)Mary,a Best-Selling Author,has Been