For the years 2014 through 2018 (inclusive) Mary, a best-selling author, has been involved in operating an antique store. In 2014, 2015 and 2016 her revenue exceeded the expenses from the activity. In 2017 and 2018, the antique store generated a loss. Which statement is correct?
A. The activity is a business. The IRS cannot prove it is a hobby.
B. The activity is presumed to be a hobby. However, Mary may prove it is a business.
C. The activity is presumed to be a business. However, the IRS may prove it is a hobby.
D. The activity is a hobby. Mary cannot prove it is a business.
Answer: C
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