@jprince1 wrote:
Can I still claim my losses on my 1040 ?
You can use losses that are not in excess of your basis in the corporation.
@jprince1 wrote:
Will the IRS say it’s a hobby now ?
The factors the IRS uses to determine whether you are operating with an actual profit motive are set forth in Treas. Reg. §1.183-2(b):
1. the manner in which the taxpayer carried on the activity,
2. the expertise of the taxpayer or his or her advisers,
3. the time and effort expended by the taxpayer in carrying on the activity,
4. the expectation that the assets used in the activity may appreciate in value,
5. the success of the taxpayer in carrying on other similar or dissimilar activities,
6. the taxpayer’s history of income or loss with respect to the activity,
7. the amount of occasional profits, if any, which are earned,
8. the financial status of the taxpayer, and
9. elements of personal pleasure or recreation
See https://www.law.cornell.edu/cfr/text/26/1.183-2
