ltbatc@sbcglobal.net asked:
I have a hobby dog kennel and would like guidelines on how to include this on our taxes.I do not have a business license since I am sole proprietor. I hope to in the future make some money from this venture, realistically not much though.
I have a hobby dog kennel and would like guidelines on how to include this on our taxes.I do not have a business license since I am sole proprietor. I hope to in the future make some money from this venture, realistically not much though.
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I don’t know about your state taxes, but IRS does not accept hobbies as a tax write off. If you claim it as a business, it must show profit in 3 years, or become a hobby. You can claim your expenses for starting it up, but you must report all income from it. You do not have to have a permit to consider it a business. It would only pay you to call it a business if you spend more than about $4,000 per year, and keep reciepts. Then you must keep all records of income as well. As a hobby you can make quite a bit (I’m not sure of the amount currently) without claiming it as income. (You still should keep reciepts to show profit margin just in case you are questioned.) Hope this helps. I am a breeder of Afghan hounds, and looked in to it. But, the figures may have changed some since then.