Taxpayer started a business in 2007 as a mobile DJ, playing at weddings, company parties, etc. Taxpayer treated it as a business from the beginning, setting up a website, accepting checks in the name of the business, etc.
As business income increased, so did expenses, even when properly depreciated, so the business never made a profit. One might say that the profit was poured back into expanding the business.
In the last year or two -- it's impossible to point to a date when this happened
-- the taxpayer lost interest and stopped trying to drum up business. Now the taxpayer just drags the equipment out now and then to do a friend's gig. Both income and expenses are so low (less than $1,000 either way) they don't make much of a difference to the taxpayer's bottom line, although they have to be accounted for somehow.
How should the taxpayer treat this gradual change from business to hobby? Simply stop filing Schedule C, stop depreciating equipment, and list the meager income on Line 21?
Thanks, Ed