The Tax Advantage for Sole Proprietorships Does Not Last Forever

Multiple Choice

The tax advantage for sole proprietorships does not last forever. The businessperson must make money in order to be considered a business. Money must be made for how many years in order to be considered a business and not a hobby by the IRS?

A) two out of five years
B) three out of five years
C) four out of five years
D) four out of six years