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Author Topic: Taxes  (Read 3701 times)
keys861
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« on: March 09, 2008, 02:58:02 PM »

I am brand new at this. I was wondering, if beekeeping turns into a business instead of just a hobby, are there any tax benefits? Can your equipment, supplies be a deduction?


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Michael Bush
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« Reply #1 on: March 09, 2008, 04:45:10 PM »

>Can your equipment, supplies be a deduction?

If you file a Schedule F or a Schedule C you can deduct your expenses, yes.
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Michael Bush
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Brian D. Bray
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« Reply #2 on: March 12, 2008, 12:01:09 AM »

It's deductable as an agricultural business.  Even hobbiest can operate beekeeping as a part time business.
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keys861
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« Reply #3 on: March 12, 2008, 06:07:32 AM »

Thanks for the replies. This will help convince my wife this is a good idea. lol

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Understudy
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« Reply #4 on: March 12, 2008, 10:24:17 PM »

The problem comes in after 3 years of your hobby not turning a profit. Then the IRS tends to get a bit testy.

And not only that it creates more paperwork which ruins the hobby.

Sincerely,
Brendhan

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KONASDAD
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« Reply #5 on: March 15, 2008, 06:41:07 PM »

Above is all accurate. I do take deduction. As Understudy says, I will lose money for 3 yrs and then get a small profit or IRS gets testy. But if you get a W-2 on your mortgage paying job, and your losses dont exceed 10% of your total gross income, you are not likely to draw attention of IRS. I used $1400 of deductions from beekeeping. I kepp all my receipts, I keep a log in car for wjen I am doing bee business, including club stuff(education! and training!), deeucted my website costs, business cards. So it will reduce your tax bill. I pay a lot in taxes and I find great joy in using the rules to help me when I can. And I havenmt ven bough a pick-up yet. That will probably be a year three purchase!
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_Brenda_
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« Reply #6 on: March 15, 2008, 11:32:12 PM »

So, do you guys sell honey? wax? bee packages or queens? pollinate?
What can a part time hobbyist do?
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Brenda
Brian D. Bray
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« Reply #7 on: March 16, 2008, 02:57:47 AM »

So, do you guys sell honey? wax? bee packages or queens? pollinate?
What can a part time hobbyist do?

All the above and more.

In my operation, because I'm handicapped, I will be selling overwintered nucs each spring, honey with emphasis on comb made in the jar, plus soaps and candles.  I may sell a queen or 2 now and then.  For me pollination is out--I just don't have the physical ability necessary for that type of work.
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bassman1977
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« Reply #8 on: March 16, 2008, 09:59:41 AM »

Did you have to get a separate tax number for your apiary?  I'm pretty ignorant with this stuff.  I know eventually I will be doing that with my operation, but I wasn't going to for another couple years when I am a lot larger, but heck, if I can do it sooner than later...OK!  An agressive growth plan like what I am doing (at least I consider it aggressive) is costly.  Any help is a bonus.
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Understudy
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« Reply #9 on: March 16, 2008, 10:02:59 AM »

Did you have to get a separate tax number for your apiary?  I'm pretty ignorant with this stuff.  I know eventually I will be doing that with my operation, but I wasn't going to for another couple years when I am a lot larger, but heck, if I can do it sooner than later...OK!  An agressive growth plan like what I am doing (at least I consider it aggressive) is costly.  Any help is a bonus.

You will have to check with you local municipalities(state, county,city).
If you do incorporation of LLC or similar you would have to file separate forms.

Since it is a startup you can do a DBA(Doing Business As) and file that with your federal taxes.

Sincerely,
Brendhan

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randydrivesabus
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« Reply #10 on: March 16, 2008, 01:18:30 PM »

I am a CPA. If you are trying to make money beekeeping then you should treat it as a business for tax purposes. The 'showing a profit' to prevent your business from being called a hobby by the IRS is not a cut and dry rule. If you continue to invest money and time into your business it is a valid business.
There are no federal rules about registering your business as long as you have no employees. State and local regulations vary. For example in VA, where food is subject to sales tax, if you sell honey you have to collect sales tax and then pay it over to the state. This requires registering with the state.
If you want your business to be an LLC and it is a single member LLC (you) then you can file with your 1040 on Sched c or f. I prefer sched f for beekeeping. Either is fine to use. No additional tax forms are necessary.

I suggest finding a local CPA who has some familiarity with small business taxes and farm taxes. He/she can guide you through what you need and what you need to keep records of.

If you choose not to go this route, you still are required to report all your income, even hobby income, and you can deduct hobby expenses to the extent of hobby income as a miscellaneous itemized deduction.
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bassman1977
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« Reply #11 on: March 16, 2008, 06:52:56 PM »

Quote
I suggest finding a local CPA who has some familiarity with small business taxes and farm taxes. He/she can guide you through what you need and what you need to keep records of.

I think this is a good idea. I can see myself in a 6' by 8' cell knocking a tin cup off of the cell bars if I get too carried away.
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keys861
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« Reply #12 on: March 17, 2008, 01:20:01 PM »

It's a good idea whenever you are in business. This is all good information. I have already began a file for reciepts and vehicle log.

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Carriage House Farm
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« Reply #13 on: March 17, 2008, 11:38:16 PM »

All of my hives are part of our farm expenses the bees I ordered livestock.

All under a schedule F....and the related ag paperwork for the State.

Now I just need to actually have bees.  grin
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Richard Stewart
Carriage House Farm
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An Ohio Century Farm
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