Some activities have been associated with the idea of a tax shelter for wealthy taxpayer. These are commonly understood to be in danger of challenge from the IRS for hobby loss disallowance. However, the rules apply to any activity that does not generate a profit for several years in a row.
Although originally adopted primarily to curtail the deduction of farm hobby losses, § 183 has been applied to a wide variety of activities including: acting, art work, writing, auto racing, gunsmithing, practicing law, making movies and videotapes, operating a talent agency, dog breeding, horse breeding, cattle ranching, farming, operating a bed and breakfast, aircraft rentals, boat chartering, boat racing, fishing, golfing, venture capitalization, used car sales, mining and drilling, sound recordings, Amway distributorships, tax shelters, and drag racing.
In addition to the foregoing, the IRS has also identified photography, stamp collecting, bowling, gambling, motocross racing, horse racing , artists, entertainers, and craft sales as possible § 183 activities.