regarding irs scrutiny of businesses vis a vis the 3 years out of 5 years profitability requirement to consider as a bona fide business endeavor and not a hobby use, does IRS calculate in depreciation, and financing costs of assets? Application is charter boat that is in a managed charter boat program...would irs insist on deducting depreciation to arrive at profitability? same with finance costs of the purchase of the boat?
