I was told it was 3 years by a personal accountant, and 2 H & R Block
associates. I was once a nanny for a woman that made a living with small
businesses; she ALWAYS closed down after three years, because of this (I
don't remember the details exactly, but she made a lot of money this way).

--
Kyla
"Just remember...if the world didn't suck, we'd all fall off."



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