We never had a profit when operating a small music business for my brother. We had an offifical business ID number and filed every year. The one thing I know they are sticklers on is that any space you claim as business space, i.e. home office, has to be used for that business only, no doing personal letters, etc. on the business computer, etc. Don't know if it is still that way nor how they would enforce it.

Do you suppose "madams" can write off the cost of condoms and who would count them? Ugh!