This question is about careers.
The IRS only allows a business to claim losses for three out of five tax years. After this, and if you have not proven that your business is now making money, the IRS can prohibit a business from claiming losses on its taxes.
After a business claims a loss of over three years, the IRS no longer recognizes that business as a business, but rather as a hobby. This means that the business owner can no longer claim any expenses on their taxes, as hobbies are not tax deductible. This is known as the Hobby Loss Rule.
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