For the Years 2010 Through 2014 (Inclusive)Mary,a Best-Selling Author,has Been

question 68

Multiple Choice

For the years 2010 through 2014 (inclusive) Mary,a best-selling author,has been involved in operating an antique store. In 2010,2011 and 2012 her revenue exceeded the expenses from the activity. In 2013 and 2014,the antique store generated a loss. Which statement is correct?

• A)The activity is a business.The IRS cannot prove it is a hobby.
• B)The activity is a hobby.Mary cannot prove it is a business.
• C)The activity is presumed to be a business.However,the IRS may prove it is a hobby.
• D)The activity is presumed to be a hobby.However,Mary may prove it is a business.