Beemaster's International Beekeeping Forum

ADMINISTRATION & HELP => ADMINISTRATION FORUM => Topic started by: cowboygourmet on September 23, 2018, 02:30:26 pm

Title: Of interest to the IRS
Post by: cowboygourmet on September 23, 2018, 02:30:26 pm
Looking for a go to person that has experience with the IRS as it pertains to expenses that might be a " Red Flag" when reporting
I have enough bees now and sell enough honey that the income will have to be reported and I don't want to make any mistakes if possible
Title: Re: Of interest to the IRS
Post by: Acebird on September 23, 2018, 05:58:13 pm
A red flag would be  not creating a business.  If you create business you should get an  accountant.
Title: Re: Of interest to the IRS
Post by: Dallasbeek on September 26, 2018, 11:18:11 pm
Texas Agriculture Code, Chapter 131, is your first place to look.  Standard business practices and the Internal Revenue Code spell out the details.  I don't think there are any "red flags" any more.  The IRS is spread so thin that agents are not checking whether you actually use part of your home as an office, for example, but the computers at IRS are very efficient.
Title: Re: Of interest to the IRS
Post by: JackMar on September 27, 2021, 12:56:01 pm
I really have no experience with the IRS and I do not sell my honey in large quantities, but it seems to me that you should talk to a tax specialist if you want to open your own business and sell honey officially, then you will have to pay taxes and if you do not have experience in this, then you will have to hire a tax specialist because you will not figure it out yourself.   I think that most likely you will have to open your own LLC, I can't imagine how else you can be the head of your own company and at the same time pay all taxes. As I understand it, this is very important for you. Perhaps you need to officially register your apiary. I work at the apiary myself, but I get a W2 form because I am not the owner. Recently I calculated online how much taxes are deducted from my salary on the W2 form on https://www.thepaystubs.com/w2-form-generator and as for me, this area is not subject to such large taxes. I think if you are not engaged in bees as the main business, then you better not worry so much about taxes.
Title: Re: Of interest to the IRS
Post by: BeeMaster2 on September 27, 2021, 08:34:22 pm
Jackmar,
Welcome to Beemaster.
Jim Altmiller
Title: Re: Of interest to the IRS
Post by: Acebird on September 28, 2021, 08:34:06 am
I really have no experience with the IRS and I do not sell my honey in large quantities,
As a small fry liabilities are probably more of a concern than the IRS.  The IRS can only take a percentage of what you earn.  Lawyers can take everything you own.
Title: Re: Of interest to the IRS
Post by: JurassicApiary on October 10, 2021, 10:03:00 pm
I am not an accountant nor should this be considered tax advice, but from my perspective, it mainly comes down to if you want to expense (write-off) your bee purchases as a business expense.  There comes a point where becoming a businesses does have tax benefits, such as being able to expense all of your equipment, feed, supplies, bees, home use for business, etc. etc.  If that interests you, then you need to be a business and I would highly recommend using an accountant to prepare your taxes. (A good accountant is worth their cost as they will usually be able to deduct more than cookie-cutter software--in this case, especially if they are familiar with farming expenses.  If the business aspect is not of interest, and you're just wanting to cover your bum with regard to reporting the income that you're deriving from honey sales, then you *may* be able to simply report it as miscellaneous income--consult a tax specialist to confirm.
Title: Re: Of interest to the IRS
Post by: porijendel on November 08, 2021, 08:37:27 am
I am surprised that now there are people who are looking for an accountant in our time. I have long ago set up a program myself that calculates all the expenses of my business. Therefore, I do not need to hire a person for this and pay him extra money. I found out about it from this article https://www.playlouder.com/quickbooks-vs-freshbooks-vs-xero-vs-quicken/ (https://www.playlouder.com/quickbooks-vs-freshbooks-vs-xero-vs-quicken/), and I was surprised because I had never heard of such a thing. Now programming has reached another level, and I am sure that robots or machines will do everything for us in a few decades. We will only manage them.
Title: Re: Of interest to the IRS
Post by: Acebird on November 08, 2021, 05:52:35 pm
I recently read an article about QuickBooks and Freshbooks, what should I choose for my business?
How big is the business? 
A simple check register will do.  A spread sheet if you like digital.  I used quickbooks for an antique business with 50-60 vendors.  I used a spread sheet for a snow plow business.  Same accountant for my wife & I and the two businesses.  We also were landlords.
Title: Re: Of interest to the IRS
Post by: BeeMaster2 on November 09, 2021, 06:35:57 pm
Porijendel,
Welcome to Beemaster. 
Please update your profile with your location. The US has a wide range of climates and beekeeping is very local. This helps to answer your questions properly.
Jim Altmiller