Question for breeders ... tax?

So just wondering, for all you breeders out there that do not actually do this for a full time job, do you have to report your income to the government? Do you get taxed on it? I know you can "write off" things for your own business, and if you do get taxed, do the write offs normally cover the tax cost?

Any info appreciated as I'll be breeding once my babies grow up and I don't want to get in trouble with the government :)


Thanks!

If it is a legitimate business, then yes you have to report your income. If you just plan on doing it on the side I wouldn't worry about it.

Yes, just on the side, but what if you sell more than the government limit?

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Starting in 2011, all U.S. payment providers including PayPal will be required by the Internal Revenue Service (IRS) to report sales information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal. We want to help you understand these changes.

Applies to sellers receiving over $20,000 in gross payment volume AND over 200 payments
Applies only for sales on or after January 1, 2011

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If you sell more than a certain limit, then you would be subject to applicable income tax laws.

$20,000? Oh, I'll be fine for a while then :)

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Originally Posted by Jessica Loesch

$20,000? Oh, I'll be fine for a while then :)

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Good luck making that! I know I'd like an extra $20K in my empty pockets :)

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Originally Posted by lasweetswan

Good luck making that! I know I'd like an extra $20K in my empty pockets :)

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Lol I know right :) I don't think ill make much ever... I do it for the love of the animal and genetics :) just don't wanna get in trouble lol.

Most hobbyist that claim on taxes wont owe anything, since all supplies and overhead will even out sales to where you wont owe anything just copies of receipts.

Unless your hatcing out 200+ snakes or selling goods havily you will not be reported via paypal.

Ill be lucky to hit 20k in paypal or 200 payments in a years time since i dont take paypal for snake sales

Real easy to get mislead and this is a very touchy area. If you want to know what is the best way to handle your business/hobby...I'd recommend consulting a CPA.

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Originally Posted by RichsBallPythons

Ill be lucky to hit 20k in paypal or 200 payments in a years time since i dont take paypal for snake sales

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Why is that? I was under the impression that it was pretty safe for the seller as long as you can prove shipment. What do you use instead?

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Originally Posted by twisted reptiles

real easy to get mislead and this is a very touchy area. If you want to know what is the best way to handle your business/hobby...i'd recommend consulting a cpa.

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cpa?

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Originally Posted by The Bears

cpa?

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Certified Public Accountant.

Probably 99% of people don't need to worry about it. It's just a hobby, where the vast majority aren't making any money and aren't selling at volumes to worry about.

Though if you're worried, talking to a CPA is probably best.

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Originally Posted by spitzu

Why is that? I was under the impression that it was pretty safe for the seller as long as you can prove shipment. What do you use instead?

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Proving shipment or not paypal dont care. Been ripped off twice and thats all i needed to know i wont accept it for snakes anymore. Ill lose sales for it but dont bother me one bit.

$20K is the limit for PayPal, but I believe you are also supposed to report income over $500 per year from any part-time jobs (thinking hobby breeding would be included). But like others have already said, your expenses should more than cover you for a while.

Well im a commercial fisherman pretty much self employed 35 % of what i make is uncles sam's neither with my recipes, slips, kids i can get a break but yes there is nothing like a cpa but like allways do your homework with who you might deal with ive had some hefty @$***** who take advatage when given the chance,but good luck...:)