[VFB] books, Wes, IRS

[David Murphy]

Wes,

I thought the rule was you had to be in the black after year 2?  I mean, logic says you're not going to make money right off the bat.  I have all the IRS downloads here in Acrobat format and have studied them ad nauseum but darned if I can quote any beyond what affects me.

Murf

[EMAIL PROTECTED]

[EMAIL PROTECTED]

Member: www.virtualflybox.com

----Original Message Follows----
From: Wes Wada <[EMAIL PROTECTED]>
Reply-To: <vfb@troutnet.com>
To: <vfb@troutnet.com>
Subject: Re: [VFB] Hackle ???/buying books
Date: Thu, 21 Jul 2005 11:27:17 -0700

IRS rules say that you need to show a profit for 3 of the first 5 years of your business, otherwise you are considered a 'hobbyist' and are not eligible to deduct expenses. There are other factors beyond the 3 in 5 rule that will weight things in your favor, such as printing business cards, opening a bank account in the name of your business, etc.

Wes Wada
Bend, Oregon

Deborah Duran wrote:

>How many years can you be in the red anyway?

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