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I believe if you own a "business" that constantly loses money year-after-year, the IRS can classify it as a hobby and not tax-deductible. Though maybe that's why the yacht ownership turn-over is high; they sell off their "unprofitable business" as to not incure the tax liability of a hobby.



Nope, someone fought that issue since there is no law that says a business must be profitable and won.

IIRC it was drag racers or something similar.




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