Michael’s friend suggests that he file Form 5213: Election to Postpone Determination To Whether the Presumption Applies That An Activity Is Engaged in for Profit if he expects to incur losses in his...

Michael’s friend suggests that he file Form 5213: Election to Postpone Determination To Whether the Presumption Applies That An Activity Is Engaged in for Profit if he expects to incur losses in his new activity. If he files this form within the first three years, the IRS cannot question whether it is a hobby for 5 years after beginning operations. What do you think are the possible advantages and disadvantage of filing this form with the IRS?