If your business does not show a profit after a few years, the IRS may question
if it's a business or a hobby, but profit is not the only consideration.
This article on the IRS website offers 9 factors to consider: How
do you distinguish between a business and a hobby?
The main (perhaps only) difference,
tax wise, between a business and a hobby is that with a hobby you can deduct
expenses only up to the amount of the
income.
To decide whether your photography is a business or a hobby, you should also read this short article on the IRS website: Hobby
or Business? IRS Offers Tips to Decide If, after reading what the IRS has to say, you consider your photography a business, continue to
treat it that way on your tax return and include it on a Schedule C.
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