How about this one? A man is making a lot of money in business, and is in the highest tax brackets. He invests a lot of money to buy a 300 acres of farmland, and hires some help, and uses his family members, to build a golf course. He operates the course like a true business. He advertises quite a bit, has a paid staff, managers, good parking, and gets a lot of public play. It in fact operates like a regular public golf course in every way. But it loses money every single year. For 15 years straight, and the owner deducts these losses against his high regular income from his other businesses. Is he in danger of the IRS coming in and saying this is just a hobby, and should not be deductible