Business & farm

see this link where the IRS puts forth criteria.

https://www.irs.gov/newsroom/heres-how-to-tell-the-difference-between-a-hobby-and-a-business-for-tax... 

 

under IRC code sec 183(d) an activity is presumed by the IRS to be for profit if it generates net income in 3 out of 5 consecutive years ending with the current year. 

 

but your activity hasn't been around for 3 years.  it's up to you to determine whether you're trying to achieve and will likely be profitable.

 

even if after 5 years, if you have not had a profit in 3 years and the IRS audits and concludes it's a hobby that can be refuted if you can show how you'll turn things around.  things that could be used include a written plan where you detail the steps needed and how to accomplish this.