Tax Time

[Fivehollers]

I am preparing for tax season and have gathered all of the necessary paperwork. We have been raising birds for a while now but this is the first time I will claim the "hobby". I got a tax ID number because some of the suppliers needed one so we could purchase on account.

I don't really have a question, (at least not a clear question yet) but was looking for advice on how to claim the business. Hobby vs Farm vs ?

Does anyone out there file on their birds? Are the birds inventory?

 

Lori Pike
Fivehollers Quail Farm

[Bird Brained]

Good luck with getting any replies on this one - too personal a question I suspect...I posted a similar question a couple years ago and not a single reply.

http://www.thatquailplace.com/smf/index.php?topic=3132.0

Your tax advisor is the best source for your situation though as each person's circumstance is different.

[Fivehollers]

A hotly debated subject at my house.  But I just read another posting under the heading I SHOULD HAVE POSTED THIS UNDER and my questions were answered.

Thanks all who might have helped for not helping.

Lori

[Flying Bob]

Bird Brained, would it be TOO personal if I asked what you ended up doing in 2007--hobby, C or F?  I am a hobbyist and this is my first year but have created a market for eggs.  I have plenty to deduct for a loss this year if I would choose to do so, but anticipate a profit next year....  your wisdom?

[wildergamebirds]

  But I just read another posting under the heading I SHOULD HAVE POSTED THIS UNDER and my questions were answered.

Thanks all who might have helped for not helping.

Lori

  Anyone know where I put my owl?    Sounds like they already had helped.  But, maybe I'm not understanding.

[wildergamebirds]

Bird Brained, would it be TOO personal if I asked what you ended up doing in 2007--hobby, C or F?  I am a hobbyist and this is my first year but have created a market for eggs.  I have plenty to deduct for a loss this year if I would choose to do so, but anticipate a profit next year....  your wisdom?

  I will make one suggestion, if you have any options to use a right off this year, next year, or depreciate over several years, it's probably best to use the deductions as late as possible, since taxes will most certainly go up.  If you can liquidate, and take capital gains, you might want to do that, now, since O'bomber has promised to triple those taxes.

[Bird Brained]

Farm.