Multiple years of losses while winding down business

[jrze]

I know that 3 years of losses = a hobby in the eyes of the IRS, but what about at the end of a business.  I’ve had a business for 18 years with every year being profitable.  We have a lot of inventory and are slowly selling it online.  I plan to close the business in 3 years, so it will likely show 3 years of losses.   Will that be an issue ? 

[Anonymous_]

The factors are listed in the IRS fact sheet below (which are basically lifted from §1.183-2).

https://www.irs.gov/pub/irs-news/fs-08-23.pdf

In short, this is not likely to be an issue given your fact pattern.