Quote:
Originally Posted by zacs
i am by no means an accountant, but be careful deducting these expenses if your business.
From what I have been told, the IRS dictates that your business has to make money in any 3 of the past 5 years. If not they will consider it a Hobby and you are screwed.
MakoMike, can you confirm?
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I don't remeber exactly what the rules is off hand, I think its one year out of the last six. But its a rebuttable presumption anyway, so if you can convince them you're in it for the money, whether you have a prfit or loss doesn't matter.