B, a bank president, is a weekend potter. He regularly sells his pots at crafts fairs and spends an average of ten hours a week either making or marketing pots. Although he has made around $300 profit per year for the last two years from pottery sales, he tells everyone that he would do it for free. This year he had a $1,500 net loss due to increased entrance fees at the fairs. If B has been making and selling pots for only three years and he makes an election under 183 to postpone IRS challenges, which of the following is a true statement if B makes a profit next year?

a. He can carry forward this year's $1,500 loss and deduct it for A.G.I.

b. He is conclusively the owner of a for-profit business rather than a hobby.

c. He can postpone paying income tax on the profit until the challenge is resolved.

d. He may shift the burden of proof to the IRS, which must show that the pottery activity is not a business.