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taxes and beekeeping

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tbrinck:
So I'm starting this year with two hives. I'm keeping all recipts for everything bought. i was wondering if anybit of what i bought could be written off on taxes? Also at what point would i start recording sales from honey, creams etc.. on taxes? I read somewhere you only record if the profit is higher than expenses. Also would i need a buisness license to sell at farmers markets and such?

Thanks
tyler

AllenF:
Are you running it as a business or a hobby?   I can tell you that I do not make any money in all my farming activities.  It is so hard to keep up with cash sales anyways.   

Moots:
Tyler,
No doubt, this is going to be state specific, if not local government specific.  I'm in Louisiana and already have an LLC set up for a rental property.  I'm expensing everything through my LLC for the tax advantage.  Needless to say, I'll have to claim all sales because of that.  That's a trade off I was comfortable with knowing my expenses would outweigh my income for the foreseeable future, if not for ever.  My rental property will keep my bottom line in positive territory, so I don't have to worry about Uncle Sam freaking out because I'm always showing a loss.

I also assumed this meant I would have to collect sales tax.  However, after talking to the local tax office, they said that I would be considered a farmer and therefore was exempt from having to collect sales tax.   :)

tbrinck:
I was just planning on selling honey and body creams made from propolis,wax etc.. primarly at local events such as a farmers market. was not sure if that would automatically make it a buisness or not.

Moots:

--- Quote from: tbrinck on February 26, 2013, 10:15:06 pm ---I was just planning on selling honey and body creams made from propolis,wax etc.. primarly at local events such as a farmers market. was not sure if that would automatically make it a buisness or not.

--- End quote ---

"Technically" I would think any sales are suppose to be claimed.  In reality, I'm sure there are many that handle it on a cash basis and don't report it.

I think the real problem is if you try to have the best of both worlds, if you're not planning on claiming the income, I'd forget any idea of writing off expenses.

I can't see much chance of a problem if you doing it out your house.  Setting up at a farmers market may or may not complicate the issue.  I'd check with someone else that sells at the market or inquire with who ever runs it as to how most folks handle this.

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