I:6-51 Hobby Loss Presumptive Rule. Rachel Schurtz is a high school English teacher. In her spare time, she likes to make her own body lotion, lip gloss, and bath and shower gel. She uses the bath products herself and gives them to her friends and relatives as gifts. Two years ago, Rachel started attending arts and crafts festivals three or four times a year to sell her products. She hands out her business card so her customers can buy directly from her via phone, email, or internet. In 2020 (the first year), Rachel reported a net loss of $375 from the activity. In 2021, she reported a loss of $460. Rachel is audited for the year 2021, and the agent disallows the $460 loss. Rachel is confident she will make a profit on her sales in 2022, and she assumes she will continue to make a profit in future years. Rachel is not sure that she can prove that her activity is a business right now. What can she do to delay or avoid having to prove to the IRS that her loss is not a hobby loss?