Actually Alan, in all seriousness, a profit is not required at all, although it is certainly better than not having one. The 2 of 7 year profit requirement is not actually a requirement but more of a safe harbor. More important than an actual profit is the manner in which you conduct your "business"--i.e. did you operate in a professional manner with a good faith attempt to make a profit. Did you spend the necessary time in the endeavor; did you operate as a business, etc.

That being said, I can always show a profit if I want to--just don't offset the wins with losses, whether on Schedule A or C, but it has never been necessary.