The general rule is that you should make a profit in three of every five years on a rolling basis (two of seven years for activities involving horse racing, breeding, or showing). Otherwise, IRS can disallow losses.
Earning side income: Is it a hobby or a business?
If you close your business, you can delete it in TurboTax.
- If you were in business for part of 2022 you can have to report part-year income and expense.
- If you are depreciating assets, you will have to close them out by either showing they were sold, disposed of or transferred to personal use. This may produce taxable income or loss.
See Closing a Business
