"For about 2-3 years, my 1099 was at a loss"
How long have you been filing a Schedule C? If you've filed for several years showing a net profit, and then had 2-3 years with a net loss, it's highly unlikely that the IRS will regard your business as a hobby. As an example, many realtors had a net loss when housing sales collapsed, after they'd had years of showing a profit. The IRS "gets" that this can happen.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
