The expenses from an activity are not deductible if that activity is classified as a hobby. A taxpayer may, however, establish the presumption that an activity (one not related to horses) is a bona fide business engaged in for profit if the activity:

A) Is profitable at least 3 out of 5 consecutive years.

B) Shows a profit at least 50% of the time.

C) Is profitable at least 2 out of 5 consecutive years.

D) Is profitable at least 2 out of 7 consecutive years.