In's and out's of BP hobby/business tax deductions?
Just a random thread that some people may benefit from.
I've been going over how to handle costs/deductions for 2006 and I've gotten many mixed responses from CPA's. The best response I've gotten so far is to file as if I were a farmer and depreciate the breeding stock across 5 years.
Anyone have much experience on this and want to chime in? If not I will update later as I find more information out for sure.
Re: In's and out's of BP hobby/business tax deductions?
Quote:
Originally Posted by SnakeySnakeSnake
I've been going over how to handle costs/deductions for 2006 and I've gotten many mixed responses from CPA's. The best response I've gotten so far is to file as if I were a farmer and depreciate the breeding stock across 5 years.
Anyone have much experience on this and want to chime in? If not I will update later as I find more information out for sure.
It has been my experience that you are unable to depreciate stock but yet you can write it off either when you buy it or if and when it dies. I find it best to write it off when I purchase it. You can depreciate any hard goods, like computers, cages, etc.
Re: In's and out's of BP hobby/business tax deductions?
Quote:
Originally Posted by MPenn
It has been my experience that you are unable to depreciate stock but yet you can write it off either when you buy it or if and when it dies. I find it best to write it off when I purchase it. You can depreciate any hard goods, like computers, cages, etc.
Yeah I was hoping to just write it off the first year, but I ran into a CPA who said it should be done like a farm animal, and one who said you couldnt write off animals at all... but both said they werent sure, waiting to hear back from them :)
Thanks for the response!
