BillM223
Expert Alumni

Business & farm

AmeliesUncle's is correct. If this is a legitimate business (I assume it is on a Schedule C) then if you properly document income and expenses, you can file with a loss for the 4th year.

 

Note, however, that the longer this streak continues, the odds increase that the IRS will write you and ask you to show that you have a plan to make a profit or if this is, indeed, just a hobby. If the IRS determines that it is a hobby, then all losses are likely to be disallowed.

 

@AmeliesUncle - note that the link does not work.

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