"C J Campbell" wrote:

OK, I think we are on the same page, then.
There is nothing preventing Ron
from setting up a "C" corp.

A C Corp is of no tax benefit for an activity which nets out losses
over the years. That's why Congress didn't include them in the hobby
loss rules. Nobody ever did it for something which could be viewed as
a hobby, nor ever would.

Equal protection arguments do require that a law
or regulation be applied to everyone the same way.

Cite a case where IRS lost on those grounds, other than a criminal
case, and rarely even there.

Thus, if profitability 3 out of 5 years presumes a business for
profit,
then it has to be applied to everyone that way unless some exception
is spelled out in the code, which there isn't.

Because there needn't be. Your premise doesn't describe real-life
litigation on this issue, nor does it reflect the practical effect of
Regulations under section 183.

Fred F.