In article ,
tars says...

Oh, I plan to.... Would be nice to show a little profit after all the
deductions, though. Can't have too many years operating at a loss or break
even....


Oh sure you can. Most small businesses operate that way forever. First DH
and I had a business with 20 employees. We never showed a profit. My brother
owns
a gas station. If he can manage it, he never shows a profit either. Believe
me, it's not an IRS flag to show no profit or small losses - it's run of the
mill.

Beg to differ. If you go 5 straight years *without* showing at least some small
profit, the IRS reclassifies your business as a HOBBY -- and you're liable for
back taxes on all the other years as well, after those deductions are
disallowed and your returns re-calculated. You don't have to show a *lot* of
profit, but there must be some within a reasonable period of time. This is to
prevent people from using a "business" which never makes any profit as a
tax-evasion scheme.

Celine

--
Handmade jewelry at http://www.rubylane.com/shops/starcat
"Only the powers of evil claim that doing good is boring."
-- Diane Duane, _Nightfall at Algemron_