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Can I claim a farm loss on taxes for my hens?

Discussion in 'Local Chicken Laws & Ordinances (and how to change' started by TeriS, Jan 31, 2011.

  1. TeriS

    TeriS Out Of The Brooder

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    Jan 28, 2010
    Fort Wayne, Indiana
    I am doing my taxes for 2010. 1 question is farm related- expenses and income. I sold 50.00 worth of eggs this year from my 11 hens, but built a coop in the spring for them, spent approximately 600. on chicken feed, etc....can I claim to have losses as a 'farmer'? It doesn't say what size of a farm operation you need to have......Please advise- I'm trying to have less to pay the IRS. Thanks!
     
  2. The Chicken People

    The Chicken People Chillin' With My Peeps

    May 4, 2009
    Smithville, Mo
    I think you can claim fuel costs as well?
     
  3. TeriS

    TeriS Out Of The Brooder

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    Jan 28, 2010
    Fort Wayne, Indiana
    Really, even if I don't really use my car for anything chicken related? Except to run some eggs to work to sell, and to the neighbors down the road?
     
  4. greenfamilyfarms

    greenfamilyfarms Big Pippin'

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    Feb 27, 2008
    Elizabethtown, NC
    You can do farm expenses, but it is done on a different form. If you have your taxes prepared for you, expect to pay more to have it done. You will most likely get more of your income taxes returned to you if you spent more than you made.

    Have receipts in case you get an audit. It doesn't happen often, but they WILL ask for receipts.

    Examples of expenses you can use:
    feed costs
    mileage for a farm vehicle (know farm mileage vs. other mileage, such as commuting to work)
    seeds, plants
    chemicals, fertilizers
    medications
    show costs, membership costs
    NPIP fees
    General supplies, such as feed containers, waterers, pine shavings, etc

    Examples of income you need to use:
    Any birds or eggs you sold
    Show winnings

    I hope this helps! Contact your local accountant or tax office for more ideas.
     
    Last edited: Jan 31, 2011
  5. TeriS

    TeriS Out Of The Brooder

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    Jan 28, 2010
    Fort Wayne, Indiana
    I am doing my own taxes on Taxact.com- schedule F is what comes up for profit and loss on farming- I have an 1800. loss after the coop was built, straw, heatlamps, feed, a bit on utilities, feeders, waterers, etc.....does it matter than I have a regular job, but just sell eggs on the side (and not very many at that- I only have 2 customers:)?? I'm trying to pay the IRS less- Currently I am owing 219.00, but this came down from 600. some that I owed before I put in the farming expenses.....Just trying to get all the deductions I can.
     
  6. Fred's Hens

    Fred's Hens Chicken Obsessed Premium Member

    Tax advice from an anonymous internet forum. Priceless.

    Seriously, unless you enjoy meeting new people (at an IRS audit process), you might want to obtain professional guidance.
     
  7. Lazy J Farms Feed & Hay

    Lazy J Farms Feed & Hay Chillin' With My Peeps

    Fred's Hens :

    Tax advice from an anonymous internet forum. Priceless.

    Seriously, unless you enjoy meeting new people (at an IRS audit process), you might want to obtain professional guidance.

    [​IMG]

    Yep​
     
  8. kuntrygirl

    kuntrygirl Reduce, Reuse, Recycle

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    Feb 20, 2008
    Opelousas, Louisiana
    Lazy J Farms Feed & Hay :

    http://www.irs.gov/pub/irs-pdf/p225.pdf

    Thanks for the link. I have been wanting to know what to do as farm as being listed as a "farm" and taxes. I will read the link and hope that this helps. I know that this is a stupid question........but do you have to complete some type of form to list your place as a "farm" or do you just classify it as such when you do your taxes?​
     
  9. kuntrygirl

    kuntrygirl Reduce, Reuse, Recycle

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    Feb 20, 2008
    Opelousas, Louisiana
    Quote:Same here
     

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