The way I understand it is that you have to NET over 5K. So, that means that the guy doing it for beer money gets to earn more than 5k as long as he takes his equipment writeoffs up front in order to get his income less than 5k. We (residents of Ohio) really should make our voices heard to the politicians. With taxes as high as they are here, it is almost impossible to grow a business here. That and with loopholes like this, make it extremely difficult to keep going.