[12] Mr. D works full-time as a systems analyst for a consulting firm. In addition, he sells plants that he raises himself in a greenhouse attached to his residence. During the past 5 years, the results from raising and selling the plants have been as follows:

Year

Year 1 Year 2 Year 3 Year 4 Year 5

Net Profit (Loss)

$(2,000) (1,200)

1,000 2,500

(500)

Lacking evidence to the contrary, this activity is presumed to be an activity carried on for profit, and the $500 loss in Year 5 can be taken on D's Year 5 tax return.

A. True. B. False.