JohnB5677
Employee Tax Expert

Get your taxes done using TurboTax

I have to give a yes and no answer to that.  Different industries will generate profits on different time table.  

If your business doesn't generate a profit within a few years the IRS may classify it as a hobby.

 

Please see this IRS fact sheet on Is Your Hobby a For-Profit Endeavor?

And also this TurboTax article When the IRS Classifies Your Business as a Hobby

 

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