For the years 2015 through 2019 (inclusive)Max,a surgeon,has been involved in bowling competitions.Only in 2018 and 2019 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 does not make a profit in at least three of the last five years. Max's activity only made a profit in two years, so it is presumed to be a hobby, but he can provide evidence to prove it is a business.

For the Years 2015 Through 2019 (Inclusive)Max,a Surgeon,has Been Involved