For it to be considered a business the IRS looks for the following
The IRS expects that if you start a business, you intend to make money at it. If you don't, your business might be a hobby. To determine if your business is a hobby, the IRS looks at numerous factors, including the following:
- Do you put in the necessary time and effort to turn a profit?
- Have you made a profit in this activity in the past, or can you expect to make one in the future?
- Do you have the necessary knowledge to succeed in this field?
- Do you depend on income from this activity?
- Are your losses beyond your control?
These are just some considerations that may, or may not, apply in determining if you have a business or a hobby in the eyes of the IRS.
If it is a hobby no expenses are allowed to be taken againist the income
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