For the Years 2015 Through 2019 (Inclusive)Mary,a Best-Selling Author,has Been

question 116

Multiple Choice

For the years 2015 through 2019 (inclusive) Mary,a best-selling author,has been involved in operating an antique store.In 2015,2016 and 2017 her revenue exceeded the expenses from the activity.In 2018 and 2019,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.