Posted by JHyre in Ohio on February 02, 2002 at 06:04:12:
You are presumed to have a profit motive and be engaged in a trade or business or income producing activity, as opposed to a hobby, if you can show gains for 3 of the last 5 years. If you cannot meet that test, you can still easily show a profit motive by:
- Treating the activity as a business…good books, etc.; and
- Showing that there was or is a good liklihood of making a profit, both subjectively (“I believe it”) and objectively (“Others don’t laugh at my belief that I could make a profit”).
John Hyre