@LudwigVan_fan wrote:
Thus, if a profit is shown once in awhile, I doubt an issue would ever be set up.
I agree and have been involved in three instances one of which was a clear loser (years ago). I informed the guy who set up a shop for his wife to sell artificial flower arrangements (and other junk) to just bag it. One sticking point was that she was never there or spent any time on it and the other was this guy had a separate business that generated a 7-figure income.
The other two involved S corporations and, conversely, were clear winners despite consecutive years of losses. No one operates the likes of a plumbing supply company or a medical claims recovery service, working 50-60 hours per week, as a hobby.
