You may have an intent to produce a profit even though you have yet to generate a net profit.
This IRS website states:
The IRS presumes that an activity is carried on for profit if it makes a profit during at least three of the last five tax years, including the current year — at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses.
As @DianeW777 states above:
If, however, you are purchasing items/products for resale and you are engaged in the activity to produce a profit this is self employment income.
In TurboTax Online, report self-employment income and expense, by following these steps:
- Down the left side of the screen, click on Federal.
- Down the left side of the screen, click on Wages and Income.
- Under Your income, scroll down to Self-employment. Click the down arrow to the right.
- Click to the right of Self-employment income and expenses.
@jasonmelerine
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