No. This is not a problem at all. You are required to report all your expenses and all your income when you are self-employed even if that means that you show a loss. Additionally, you should not downgrade your business to a hobby just because your business in not profitable in a particular year. The IRS has a safe harbor rule that if you have turned a profit in at least three of five consecutive years, the IRS will presume that you are engaged in a business for profit. Please see When the IRS Classifies Your Business as a Hobby for more info.
I'll look for your other question as well now and see if you still need help there. Thanks for posting again!
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