Question
Which of the following statements concerning hobby activities is correct? A.Any activity which generates a profit in the first three years is presumed to be
Which of the following statements concerning hobby activities is correct?
A.Any activity which generates a profit in the first three years is presumed to be a for profit venture, not a hobby activity. B.The IRS must prove that the taxpayer does not have a profit motive to treat an activity as a hobby activity. C.Expenses associated with the hobby activity can offset, without limitation, the income generated from the activity. D.Hobby income is included in gross income above the line, while hobby expenses are deducted below the line and are subject to a 2% hurdle.
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