Another great job on the quilting!!!

I agree with the IRS wanting you to show a profit or it is considered a hobby.
You should know the purchase of a LA will be "pro rated" (ammortized) out over a number of years, as a deductions, and some of your other more spendy items...
You really should talk to an accountant/tax preparer first, to get all of the legal questions answered :wink:
Don't forget to ask what happens to these deductions if you close your business before the ammortization is completed :wink:

Your quilting is coming along just fine. Practice makes perfect. Good luck with your business.

WOW - you are doing really well considering you are new to FM quilting. :)

Looks good to me!