Tax Pro Sophie has a new client, Lucio. Lucio has a W-2 and a small business buying and selling antique dental implants. Lucio provides Sophie with his last four years of tax returns. Sophie sees that each year shows a loss on the return. Sophie has questions for Lucio. Lucio's answers indicate that he did not keep a separate checking account, he worked on the business when he felt like it, and he didn't advertise. He just loved antique dental implants and was not buying and selling them for profit. What implications do these answers have for Lucio's tax return?
a. There would be no effect on Lucio's tax return.
b. Lucio would be exempt from the requirement to file a return.
c. Lucio is engaged in a hobby and his expenses would not be deductible.
d. Lucio can claim an extra deduction for dental expenses.