When should one stop claiming a side business that is not producing, but has not been "closed"?

[natalie20]

I started a business over 20 years ago in the direct sales industry and it was my primary income for about 17 years. I have stopped working it, but still enjoy minimal sales from existing clients. I have widdled down the expenses over the past few years, but have still filed it. It has been showing a loss for almost 5 years. I don't feel right claiming the deduction, but I have not officially closed the business. I am not sure what to do. Thank you.

[Anonymous_ · Accepted solution]

Which type of business structure do you have? Sole proprietorship that reports on Schedule C?

See https://www.irs.gov/newsroom/earning-side-income-is-it-a-hobby-or-a-business

If this is just a hobby now, you are not allowed to deduct expenses. 

Regardless, you still need to report income from the activity.