> If you keep losing money over that span, the US  IRS tends to look on it 
> as
> a hobby But, any good accountant can help you through that wicket. You are
> still losing money, just looks better on paper. My wife is an artist, so I
> know.

Mine too.

There is an alternative argument that is acceptable, particularly in view of 
the fact that new businesses typically lose money in the first few years, 
but are demonstrably bona fide businesses, and that is the "reasonable 
expectation of profit".

That argument is usually accepted, especially if the operation is run in a 
businesslike manner.

I think though that the argument stretches thin over time, though.

allen
http://www.honeybeeworld.com/4dot9/
---
Sometimes what's right isn't as important as what's profitable.
Trey Parker and Matt Stone, South Park, Prehistoric Ice Man, 1999 

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