income would be reported on my Schedule B, interest income, but I think that the schedule is reserved for portfolio / passive income. I actively lend money, send bills, foreclose sometimes on property, and incur bad debt. Shouldnt this "operation" be reported on Schedule C, or some other form of operation?
Small business taxes include state and federal income taxes and employment taxes, self-employment taxes, and excise taxes.
Filing an income tax return is required for all businesses except partnerships, which file an information return instead.