Thanks for the info Julie. That is good info to have. Its actually a heck of a lot less hassle to claim it as a hobby. Fed doesn't punish you for it but try that in Indiana and you get reamed. Made $15,000 in a year had $14,000 in expenses. $1000 profit if I am running as a business. Looked at it and either way I pay taxes on $1000 for Fed. Now Indiana steps in and if I run as a business I pay tax on $1000. If I run it as a hobby I now have $15000 more income that I have to claim and Indiana does not care if I have expenses to offset it.
Running it as a hobby is not as easy as just keeping receipts either. Julie could fill us in on that. I have my CPA working on mine right now and I had questions that even he could not answer and is now researching. For instance, claiming income for parts received from sponsors. Sponsor is writing that off, so you need to claim it as income. Only problem is that there is no income; just parts.
I am confused just talking about it.