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But the article is written from the perspective of a going-concern, not a business that began, ate up a bunch of expenses, then ended all within the course of a single tax year.

AFAIK your Sch C losses will in fact offset your regular income. Its my understanding that if this was started as a true business, as opposed to a "hobby", your documented/substantiated losses for the business should be accepted by the IRS.

Rich has it right. For more information on business vs. hobby see the section titled "Not-for-profit Activities" in IRS Pub. 535. If the IRS determines that your "business" was a hobby, then your deductions are limited. Full details are provided in the same section of Pub 535.

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