"Last year, only 4 of 32 professional sports teams in a new league turned a nominal accounting profit. Betty purchased such a team this year. Betty operates the franchise in a business-like manner, but hasno expertise in the area of sports franchises (Bettys primary source of income is from her cardboard packaging business).She attends all the games(as she loves the sport) and spends some time managing the business, but has hired a general manager to run the day-to-day operations. As aturnaroundexpert,Betty is comfortable she can make this franchise profitable; however, she may have over-stepped her ability since the league is strugglingoverall.Herlossfortheyearwasdeterminedtobe$950,000. Can she deduct this loss?"