@mahimahimom wrote:
the Hobby Loss 3-year rule?
I think you are misunderstanding that rule.
The rule is that if it is profitable for three out of five years, the IRS will presume it is a for-profit activity. Having a loss for three out of five years does NOT mean the IRS presumes it is a hobby; it just means the IRS does not "presume" anything. They would look at the specific facts-and-circumstances, as outlined in the link from the other answer.
