Anyone get a "Nest Run" permit from AZ Dept. of Agriculture to sell eggs? I was thinking about it so I can sell the excess eggs I get from my 25 birds. After looking into it though, and whether or not you could classify it as a business for IRS purposes, it doesn't seem worth it unless you have economies of scale, like over 250 or so laying chickens. The reason being, if you have a small flock like mine it would be hard to justify it as a business, so then it would be considered a hobby. And as a hobby your deductions (feed and bedding in my case) would be limited to gross sales and then only the amount that exceeds 2% of your adjusted gross income would be deductible. Since my feed and bedding expenses would only be about $900/year I wouldn't be able to deduct any expenses as other misc on 1040 Schedule A unless me and my wife made under $45k a year, and even then you'd only be able to deduct a very small amount. Hardly seems worth it so I guess I'll just stick to giving extra eggs away. Just wondering if everyone else sees it the same way or if I'm missing something.