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 $200 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 $1,000 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 $1,000 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 may shift the burden of proof to the IRS, which must show that the pottery activity is not a business.

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