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I'm just finishing up my side business' 2000 taxes, and am coming up with a loss for the second year in a row. All years before that (going back to '89) had positive income.

I'm in the process of re-building my business, but I know that the necessary investments are going to result in another loss for 2001. What is the limit on number of consecutive years you can have Schedule C losses for the same business? Also, does the amount of the loss have any impact (e.g. a loss of $1 or $10,000) as far as determining whether you can declare another loss in the third (or fourth) year?

Assuming you're not allowed to deduct losses for a third consecutive year, do you still have to file a Schedule C for that year?

Any advice would be appreciated, thanks.
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