Chickens and taxes

[aoxa]

Coming from a Canadian accountant, I find your tax laws very interesting

We do not pay tax on sales of livestock if under a certain amount. If we DID have to pay taxes on it, we could deduct all the expenses that went along with it.

 

[Nitrous]

Quote:
You definitely should. Except I don't believe income taxes are ever put on a referendum. By all means vote to eliminate your income tax and we'll see how that goes. I think the original Tea Party was all about that. If everyone has to pay taxes, what do you do? Do what every business in the world does.

RAISE YOUR PRICES!!!!!

Unless *you* want to pay those taxes. What happens with fuel? Tax raises the price you pay. Not the price the gas company pays. They don't eat tax. The consumer does.

Always.

 

[NixNoodleNumbat]

I'm glad I'm Australian…
It's just a lot simpler, from what I know. You give the guy the chicken, he gives you money. Easy as that.
Besides, I find it amusing reading legal stuff and thinking 'what do they mean by that?' Endless conspiracy theories have come from that(none are serious).

 

[Nitrous]

The Federal Tax accountants will give up on this once they get smacked in the face with cold, wet fish that is Chicken Math.

 

[NixNoodleNumbat]

Quote:

I can just imagine someone trying to get me to fill out the form…
"So you sold 10 chickens?"
"No, 4 were bantams, which don't count as whole chickens, they are quarter-sized. So I sold 1 bantam, one was a rooster, which counts as -3. And the other 6 were just hatchlings, each with the possibility of being a rooster. So really I sold -21 chickens. you should be paying me."

 

[bargain]

Quote:
PayPal is issuing 1099's if you have over $20K in gross sales AND 200 sales.

A 1099 is just a gross income statement. You report it and deduct business expenses. Not that big a deal with careful record keeping.

Thanks Terrie, I've been trying to get an answer on the reported income by paypal. Now I can lay that to rest.
I was somehow confused that there was an upper cap on expenses....Actually a form from paypal would probably help me, now that I think of it, because last year I spent hours totalling up all the sales, big and small and we do count every animal sold, whatever the price...There is a lot of paper work associated with farming but.... that's one the harder part of farming for me but I'm forcing myself to become more and more organized. And our farm is actually a business, it's our livelihood so we know we must pay what is due and will continue to do that.

 

[Nitrous]

Quote:

I can just imagine someone trying to get me to fill out the form…
"So you sold 10 chickens?"
"No, 4 were bantams, which don't count as whole chickens, they are quarter-sized. So I sold 1 bantam, one was a rooster, which counts as -3. And the other 6 were just hatchlings, each with the possibility of being a rooster. So really I sold -21 chickens. you should be paying me."

NNN, you are a genius.

The US government will abandon the 1099 form when it is found to cost them an average of $500 per submission, whenever chickens are involved.

"Sir, we found that people were purchasing chickens and both buyer and seller were getting "miles" on their credit cards. We do not understand it but most of the state of Wisconsin was not available for auditing because they were on vacation in Hawaii or the Bahamas. We would like to formally ask you to rescind this fiasco and let the tax"payers" go back to whatever method they were using to value chickens."