Thank you. No, it isn't a hobby.
I was worried about those 3 years though.
It would have been better if he had generated 0 income in 2019 and used it sheerly as a start-up year for expenses.
And then have the business beginning in TY2020.
But that was already filed. I can't undo it.
Not sure if it makes a difference - I think it won't - that in TY2019, he was sheerly a sole proprietor,
with no LLC.
He got the LLC with EIN nr in TY2020 and then added LLC to his business name.
It sure would be better if I could carve out that TY2020 for him though, just for that 3-year rule.
Oh well, in case of audit, I will try and help him hold his ground.
Yes, it is a serious business for him, but the TY2020 and TY2021 (dealing the mechanic/marina crooks) were setbacks in that he simply couldn't operate. He was very upset about it. Spent money on advertising, trying to get it all going again to make up for lost time and having to turn customers away because of the broken boat.
I guess, yes, he could prove that this is not a hobby (though obviously he loves fishing, and that why he got so good at it and can be a great captain, putting people 'on fish'). It is his only source of income.
Thank you. I worry a little less now. Because these thoughts (what if ...) keep me up at night.
