I dont know if Satinsnow's comment was in jest or not, but in fact many artists go years and years and never show a profit. What is important is being able to show the effort and intent to make a profit. I disagree with what I see as suggestions that you should pretend to make profit or not take legit deductions just to keep the IRS happy-if you have the documentation to back up your assertion that the business is for profit, you have little to worry about. (I will also add right now that I'm somewhat of a hypocrite, because I have done just that in special circumstances when I felt my documentation of intent/effot to profit was rather weak). But you can start depreciating personal equipment used in your new business immediately (or you could just a few years ago when I was doing so). And if you have other income to offset your losses (whether deductible or not), then you really have little to fear from lack of profit.

Wayne