@Mike9241 wrote:
I did mention income taxes
you pay income taxes and self-employment taxes on the net income (ie social security and medicare)
I did not mean to offend. I thought your comment about SE taxes and hobby income was incomplete. An ongoing business activity with a profit motive should be reported as a business, even if there is a loss. While the IRS will usually assume that a business with too many losses should be recharacterized as a hobby, this can be rebutted. And of course, a business with a loss won't incur SE tax or income tax, only if it shows a profit.
