See this blog post.
https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a...
In general, if you don’t make a profit at least 2 out of the past 5 years, the IRS may assume that you are really running a hobby. However, you can rebut this presumption by showing facts and circumstances that indicate that you are running a business with a true profit motive, just that you haven’t been able to make a profit.
My suggestion is that you file your return based on your best interpretation of your facts and circumstances. If your facts and circumstances indicate that you are running a business, then go ahead and continue to file your business losses, and use them to offset your other taxable income. However, be prepared to defend yourself in case the IRS tries to rule that you have a hobby instead. You may want to hire a professional to help you make the determination.
