Not trying to make it a business....

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Originally Posted by Auletto

I'm not sure if I agree.

Say if your 10k in the hole like a lot of us are and your selling some of your hatchlings and snakes just to bring some of that loss expense back. I don't think it's 100% necessary to pay taxes on your loss. There's a lot of tax laws relating to hobbies and I'm no expert, so take this with a grain of salt.

Talk to a tax professional or an accountant for more information on hobby tax laws.

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In general you wouldn't pay taxes on a net loss but you must report the revenues from selling to prove you have that net loss.

But there are a ton tax laws, so talking to a professional is the best bet

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Originally Posted by ted1025

Anything that increases wealth from whatever source derived should be reported as taxable income. (i.e. finding money on a street or selling 1 snake).

How will the IRS know if your reporting everything you should be? They probably won't but if you get audited, they'll probably find it.

It's your duty to report it and also scroll through the thousands of sections in the IRC (internal revenue code) to find any allowable deductions that could be associated with that income.

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Always claim, Though my guy from H&R block told me that if your a new business you have roughly 5 years that you do not have to claim on taxes due to being in the RED. Talk to you guy first and let him go over the receipts and so on to see if your in red or not.


I only fill out a single 1040ez form which allows me to include all my online revenue in a simple form, yes mine is simple and im glad for it. Most the time adding in online sales whether its for computers or snakes i still end up getting money back from my day job at GM.

wow, i did not know that being a hobby breeder was going to be complicated...LOL

Quote:

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Originally Posted by Auletto

I'm not sure if I agree.

Say if your 10k in the hole like a lot of us are and your selling some of your hatchlings and snakes just to bring some of that loss expense back. I don't think it's 100% necessary to pay taxes on your loss. There's a lot of tax laws relating to hobbies and I'm no expert, so take this with a grain of salt.

Talk to a tax professional or an accountant for more information on hobby tax laws.

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So by this theory, any business that isn't turning a profit doesn't need to report any income at all?

Thats wishful thinking. Just because you are running in the red and not turning a profit doesn't mean when someone pays you for a snake it isn't income, it is always income, its simply not profit.