In addition to TT Melaine's response, keep in mind the hobby loss rules.
If a business is not profitable in at least three out of five years, or profits are small in the three profit years and losses are large in the two loss years, the taxpayer must prove the activity is a for-profit business under the facts and circumstances test to avoid the hobby loss disallowance rules.
Just an FYI.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
