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Author Topic: How much $ did you spend in 2010  (Read 2918 times)
bee-nuts
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« on: February 27, 2011, 05:51:48 PM »

How much cash did you spend last year on your beekeeping hobby?  (Edit: I have turned my hobby into a side income/business)

I have over $3500 in receipts and I know I lost track of some of them.  All those boxes, lumber, nails, paint, sugar, fencers, saws, etc add up

I went from 6 colonies fall of 09 to 20 in fall of 10

I am working on tax return right now.  It looks like I will get about two grand more back from the taxes I paid from my regular income. This is when all expenses and my mileage are added to the the return. If you travel to buy bee equipment, to yard etc, the mileage is deductible.  If your equipment supplier is a considerable distance it adds up.  You cant deduct your first trip to work so if your yard is five miles and your equipment is 30 go to the yard first and check to make sure the fence working!

I used taxact to get a round idea.  I will still use an accountant to make sure I am doing my stuff right.

(Edit:  I have not filed my return yet, I still need to meet with my tax accountant so Im not sure what will happen for sure.)

« Last Edit: March 01, 2011, 04:31:29 AM by bee-nuts » Logged

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« Reply #1 on: February 27, 2011, 06:13:46 PM »

I have spent at least that, especially if you include the cost of bees for 2011 that I have pre-funded.  With my business model I have others pay for the equipment to put on their property.  They own it and I provide it to them at my cost and I manage their hives turnkey for the year.  In return I take a split of bees from each hive (to make 2 nucs) after the flow, and if they ask me to extract their honey for them I keep half the harvest.

I'd be curious to hear others weigh in on whether I am getting or giving a better deal. 
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Countryboy
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« Reply #2 on: February 27, 2011, 08:35:27 PM »

If it's a beekeeping hobby, then it can't be used to tax purposes.  If you are in a position that you are exercising federal privilege in your beekeeping (or claiming to use federal privileges) then you can claim to be a 'trade or business' and deduct expenses.

Hobbies aren't tax deductable.
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jmblakeney
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« Reply #3 on: February 27, 2011, 08:41:40 PM »

I didn't realize beekeeping expenses where tax deductible.  I could understand if this was your business but you said
.....on your beekeeping hobby?
if that's so, that is great news and wish I would have known it before I filed this year.
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jmblakeney
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« Reply #4 on: February 27, 2011, 08:44:27 PM »

Nevermind,  Countryboy must have put his post in while I was typing mine out.  He answered my concerns. 

It would've been nice though.
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SawBee
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« Reply #5 on: February 27, 2011, 10:12:45 PM »

If you report the income from any honey, wax or bee sales (which you should by law) then beekeeping is a business (even if its part time) and expenses incurred in producing the bee products is deductable.  The income and expenses are all reported on a business form.
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iddee
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« Reply #6 on: February 27, 2011, 10:27:29 PM »

With a hobby, both income and expenses are reported. Expenses can only be deducted up to the amount of income, but they can be used to offset income from the hobby. Any expenses after that cannot be deducted.

Personally, I made a small profit with my bees, and reported the profit until this year. I have gotten out of most of it now and let the younger folks do it. I mostly mentor now.
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Vance G
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« Reply #7 on: February 27, 2011, 10:46:06 PM »

File the farm schedule, keep good records because you may trigger an audit  Claim depreciation, mileage, all out of pocket expenses, fees and rents you paid; and deduct losses from your gross income.  IF you are staying hobbyist you can deduct expenses up to the the break even point.  If you lost money you can't claim that but are supposed to claim any profit.  It is your job not to pay any taxes you don't owe!
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gardeningfireman
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« Reply #8 on: February 27, 2011, 10:55:51 PM »

I spent about $1000, and got back about $900 in sales (honey, hive, & bees).
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bee-nuts
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« Reply #9 on: February 27, 2011, 11:06:37 PM »

Edited.  Better left unsaid.
« Last Edit: March 01, 2011, 04:24:08 AM by bee-nuts » Logged

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« Reply #10 on: February 28, 2011, 12:05:23 AM »

Edited.  Better left not said.

Simply put, if you are going to turn your hobby into a side income, I recommend seeking advice from someone who is familiar with business taxes, codes, etc.
« Last Edit: March 01, 2011, 04:27:25 AM by bee-nuts » Logged

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« Reply #11 on: February 28, 2011, 12:38:40 AM »

I didn't spend enough. I still need more hive bodies, frames, tops, bottoms, nucs, nails, screws, glue, saw blades, router bits, swarm traps... grin
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hankdog1
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« Reply #12 on: February 28, 2011, 07:55:04 AM »

I know here in Virginia you can do away with sales taxes if you only use the equipment for agricultural purposes only.  May be something the rest of you guys may want to check into.  Buying thousands of dollars in equipment doing away with sales taxes can mean buying something else you need. 
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Countryboy
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« Reply #13 on: February 28, 2011, 09:13:19 PM »

If you report the income from any honey, wax or bee sales (which you should by law)

The question is if the sales of honey, wax, or bees can legally be classified as 'income' or not.  If it actually is income, then yes, it needs reported.  If the sales are not income, then it is unwise to call it income just so you can pay a tax on receipts that would otherwise be untaxable.

When you start selling stuff, its income.

That is a legal determination.  Are you licensed to practice law?

The Supreme Court ruled that 'all that comes in is not income' which shoots your argument that sales are income.

Use a professional accountant to help you prepare your tax returns.


I have a better idea.  Learn the actual law, and to what and whom it applies to.  An accountant just knows how to fill out forms - they don't know how to determine if a receipt is income or not.  If you don't know whether or not a receipt is income, then odds are, you will erroneously call it income, and end up paying more than the law requires.

Add anything else you think is relevant to the thread.

I went into winter with 42 colonies, ended up with almost 5000 pounds of honey, and didn't have a single dollar of income from my beekeeping endeavors.  No need for deductions when I have no tax liability.

I know here in Virginia you can do away with sales taxes if you only use the equipment for agricultural purposes only.

Beekeeping is a form of agriculture known as apiculture.
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ccar2000
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« Reply #14 on: February 28, 2011, 10:39:51 PM »

This is my second year and have two hives. In 2010 I spent about $1,100 including two packages to replace my starved out Italians.
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bee-nuts
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« Reply #15 on: March 01, 2011, 02:33:32 AM »

I should have refrained from mentioning anything to do with taxes from this thread when I started it.  I had no intention of turning this into a argument over taxes, whats legal, or whats not. I simply thought it would be interesting to share with each other how much we spent on our beekeeping endeavors, whether in legal terms they should be classified as a hobby or a business.

I have decided to turn my hobby into a side income/business and I intend to recover as much of my expenses as I can with the help of an experienced tax accountant.  Im sorry if that strikes a nerve with anyone or if anyone feels its wrong.  I have my opinion and you, yours.

Thank You
Bee Nuts
« Last Edit: March 01, 2011, 04:21:48 AM by bee-nuts » Logged

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Jim 134
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« Reply #16 on: March 01, 2011, 06:20:44 AM »

I didn't spend enough. I still need more hive bodies, frames, tops, bottoms, nucs, nails, screws, glue, saw blades, router bits, swarm traps... grin



   LOL


   BEE HAPPY Jim 134 Smiley
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iddee
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« Reply #17 on: March 01, 2011, 08:02:24 AM »

What argument? I thought it brought out some good info. A very informative thread.
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"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me . . . Anything can happen, child. Anything can be"

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bee-nuts
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« Reply #18 on: March 01, 2011, 11:02:35 AM »

"What argument?"

The one I almost got into about tax law!  Ill leave that wide open for you to debate if you find yourself interested.
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« Reply #19 on: March 01, 2011, 11:33:25 AM »

If you have that much $s invested in Bee Keeping and equipment you may want to look into establishing an LLC. That way you can take advantages of that for Tax and Legal Purposes.
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