[Platonic]

You can likely write off most of that 60k. If you reinvest some of that 60k you can write it off too. You are liable for sales and use taxes no matter what, as well as business taxes for your area.

$50,000 in 07 you also owe sales / use tax. Again you can write off new expenses, and you can write off certain fixed cost items that you couldnt completely write off the previous year. I.E. if you spent 10,000 on an embroidery machine you can't write off all 10,000 in that first year, I think you have to do it in 1/7ths over the next 7 years. I don't remember for sure.

I haven't had to worry with my T shirt business because all income is immediately re-invested.

Ofcourse there is always that sales tax though.

Platonic