For the years 2009 through 2013 (inclusive)Mary,a best-selling author,has been involved in operating an antique store.In 2009,2010 and 2011 her revenue exceeded the expenses from the activity.In 2012 and 2013,the antique store generated a loss.Which statement is correct?

Question

Quizplus · Accepted Answer

The presumption is that the activity is a business since Mary has had revenue exceeding expenses for three out of five years. However, the IRS may still attempt to prove that it is actually a hobby.

For the Years 2009 Through 2013 (Inclusive)Mary,a Best-Selling Author,has Been