When does it stop being a hobby?
I am medically retired and disabled and have decided to start breeding snakes as a hobby to keep me active. I will be selling what I breed, but what I want to know is when does it stop being a hobby, and start being a business? When do I need to, or do I need to get an actual business name and account and start filing taxes on it all?
Re: When does it stop being a hobby?
Quote:
Originally Posted by
DM1975
I am medically retired and disabled and have decided to start breeding snakes as a hobby to keep me active. I will be selling what I breed, but what I want to know is when does it stop being a hobby, and start being a business? When do I need to, or do I need to get an actual business name and account and start filing taxes on it all?
I think when you start to make a profit, and not use all the money to keep the hobby afloat, it becomes a business. Be careful a lot of the time when it does become a business, it loses its charm and fun.
Re: When does it stop being a hobby?
Quote:
Originally Posted by
monk90222
I think when you start to make a profit, and not use all the money to keep the hobby afloat, it becomes a business. Be careful a lot of the time when it does become a business, it loses its charm and fun.
so true, once its a business people tend to not care for there snakes...
Re: When does it stop being a hobby?
what amount of money though? Say, and this is just random numbers, I break even this year, make $100.00 over cost next year, and lose money the year after? Should I file on that $100.00? And should I be filing each year anyways to deduct cost of supplies and new breeding stock and feeders and such (or can I?)?
I guess I need to just talk to a CPA but was hoping I could get a bit of insite from someone that was kinda stuck in the middle of a hobby/business.
Re: When does it stop being a hobby?
Quote:
Originally Posted by
luna13
so true, once its a business people tend to not care for there snakes...
I am going to do everything I can to not let that happen to me. Only reason I am wanting to do this really is that I have to have something to keep me busy and keep me doing things due to my head injury. I would not mind making a bit of money here and there, but I really just want to have it pay for itself (with enough to grow).
