For the Years 2012 Through 2016 (Inclusive)Max,a Surgeon,has Been Involved

question 140

Multiple Choice

For the years 2012 through 2016 (inclusive) Max,a surgeon,has been involved in bowling competitions.Only in 2015 and 2016 did his revenue exceed the expenses from the activity.Which statement is correct?

• A)The activity is a business.The IRS cannot prove it is a hobby.
• B)The activity is a hobby.Max 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,Max may prove it is a business.

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Definitions:

Inter Vivos Gift

A gift that is made by a person during his or her lifetime.

Mislaid Property

Items that are intentionally placed somewhere by the owner and then forgotten, differentiating it from lost or abandoned property.

Real Property

Land and anything permanently attached to it, such as buildings and fixtures, which is considered immovable.

Conditional Contract

A contract that becomes enforceable only on the happening or termination of a specified condition.