Quote Originally Posted by bait4snake View Post
The tax code is such a screwy thing... I've been wondering if you could claim our hobby as a tax deduction w/o having a business license. So, if you've spent more money on the hobby than you've made, can you claim that all as a deduction? Snake food, racks, snakes, etc?
Yes and no the way my CPA originally explained it to me. If you claim anything as a loss as a "hobby" for more than 3 you will get a letter in the mail from Uncle Sam. Show a profit on that hobby at the 3 year mark and your fine. Again, I may be wrong but the way it was told to me is that the irs allows "hobby" deductions for something that you plan on becoming a business but don't have the resources to completely follow threw with at that time. After 3 years of losses, its just a hobby and a no no to wright off anymore.

Check with your account and have them sign off on it, buy the audit protection

Don't ever hide profits though, a mid level breeder here in FL who has been producing for 10 + years just got caught. 3 money loosing breeding operations (according to tax records) under 3 different federal EIN numbers = one entity = you were hiding something and now your going to pay for it..... $37K plus penalties and interest adds up to a much bigger number than you would think.

Taxes are a good thing to pay, you only pay them if you actually make money, so the higher your tax bill, the more you made..... (thats at least what I tell myself laying in bed at night waiting for the check to clear trying decide if I should put a stop payment on it and run to Mexico or not).