For the years 2014 through 2018 (inclusive) Max, a surgeon, has been involved in bowling competitions. Only in 2017 and 2018 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 3 of the last 5 years. Since Max only made a profit in 2 of the 5 years, it is presumed to be a hobby, but he can provide evidence to prove it is a business.

For the Years 2014 Through 2018 (Inclusive) Max, a Surgeon