Answer:
To be eligible for business deductions, your business must make a profit in any __________ years of a __________-year period.
b. 3,5
Explanation:
The IRS safe harbor rule states that a business must make a profit in 3 out of 5 consecutive years to be regarded as a business that is established for profit-making motive. This implies that if profits are not made in 3 of 5 consecutive years, IRS will not presume that the entity is established for profit, thereby affecting the entity's ability to claim business deductions.
