You would owe capital gains tax if these were considered like breeding livestock. You would probably want to sell the pets again so you could offset your gain w

You would owe capital gains tax if these were considered like breeding livestock. You would probably want to sell the pets again so you could offset your gain with loss. Otherwise, I think this sale would be considered ordinary income (other than the fact that it's for an outrageous amount). If you did this as a person, you would have an enormous tax bill and no cash to pay it. As a business, you could deduct your expenses and end up with 0 taxable income, although the IRS probably wouldn't like it.