I haven't been doing this for five years. Some businesses are in the red for years until they make a go. I don't mind selling my quilts for the price I sell them. I am retired and do a lot of quilting. Like the gal said, she donates some of her quilts and writes it off for charity. Maybe that's what I should do. I've sold every quilt I've advertised within 10 days so I'm doing fine. I'm just not making a profit. And that's fine with me. I don't lose money if I don't count my hours, but if I don't count my hours, I come out ahead. My MIL says what I'm doing is fine, so I'm going with her. She's done my taxes for 17 years and we've never been audited or had any problems. My question wasn't about the IRS to begin with. I meant to ask if anyone was selling their quilts instead of giving them away or keeping them.