Taxes, Questions and Curiousities

So I am an accounting student and have just been getting into the tax portions finally. I'm curious, tax wise how you all report if you breed.

Do you report as a Hobby and use the hobby loss to remove the income from the sales you do have(since most say you are at a loss)

Or do you actually do it as a business (S-Corp, sole prop, partner etc.) and if so how do you record your reptiles for tax purpose?

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Originally Posted by Deacon240

So I am an accounting student and have just been getting into the tax portions finally. I'm curious, tax wise how you all report if you breed.

Do you report as a Hobby and use the hobby loss to remove the income from the sales you do have(since most say you are at a loss)

Or do you actually do it as a business (S-Corp, sole prop, partner etc.) and if so how do you record your reptiles for tax purpose?

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you will see that both get used and you will also see that some just attempt to fly under the radar

I jsut recently got information from my county clerks office about this. They said if this is a hobby ran from a home and not a store front, nothing further is needed tax wise. Since i dont do this as a main source of income, granted some months are more profitable than others.

The state also said no permits and or registrations needed to be a breeding hobby and to sell them either. There for wouldnt need to be claimed.

Granted this is not for ALL states. Each one has their own rules on hobbies and selling. Just what i was given from the State of Michigan is that i do not need anything when being a private hobbyist.