Chickens and taxes

[dretd]

Don't know about that one. A dog is not a "farm animal" per say. Your CPA may be scratching his head too!

Not sure how it works in other states, but in Colorado, the state doesn't tax farm animal feed and products used for production including all traditional farm animals like chickens and horses 'regardless of use'--this means its not taxed at the vendors, no need to sign up for a business waiver. They have a provision that dog feed is exempt as long as it is not a pet and used as a working dog but this does require you to sign up for the exemption. Most cities will go along with that and not tax--Fort Collins does but the next town over, Loveland, still taxes 3% on feed so guess where I buy my chicken food and any other items I buy on that shopping excursion?

Here is the quote off lexis-nexis about dogs in Colorado:' "Pet animal" means dogs, cats, rabbits, guinea pigs, hamsters, mice, rats, gerbils, ferrets, birds, fish, reptiles, amphibians, and invertebrates, or any other species of wild or domestic or hybrid animal sold, transferred, or retained for the purpose of being kept as a household pet, except livestock, as defined in subsection (9) of this section. "Pet animal" does not include an animal that is used for working purposes on a farm or ranch.' http://www.lexisnexis.com/hottopics/colorado/

 

[furbabymum]

Not sure how it works in other states, but in Colorado, the state doesn't tax farm animal feed and products used for production including all traditional farm animals like chickens and horses 'regardless of use'--this means its not taxed at the vendors, no need to sign up for a business waiver. They have a provision that dog feed is exempt as long as it is not a pet and used as a working dog but this does require you to sign up for the exemption. Most cities will go along with that and not tax--Fort Collins does but the next town over, Loveland, still taxes 3% on feed so guess where I buy my chicken food and any other items I buy on that shopping excursion?

Here is the quote off lexis-nexis about dogs in Colorado:' "Pet animal" means dogs, cats, rabbits, guinea pigs, hamsters, mice, rats, gerbils, ferrets, birds, fish, reptiles, amphibians, and invertebrates, or any other species of wild or domestic or hybrid animal sold, transferred, or retained for the purpose of being kept as a household pet, except livestock, as defined in subsection (9) of this section. "Pet animal" does not include an animal that is used for working purposes on a farm or ranch.' http://www.lexisnexis.com/hottopics/colorado/

I buy my feed in Ft Collins. Well when I plan ahead I do at least. When I don't plan ahead I have to buy it in Cheyenne and it sucks!!!!

 

[lahowardjr]

I know some people that did get tax exemptions for their working healer but my understanding that it does have to be used work cattle, sheep, etc... I also understand that it is very difficult to get the exemption. Any hoo...Chickens are easy to deduct in a rural setting.

 

[WalkingOnSunshine]

The dog is the difficult one. In Ohio, you'd have to very convincingly show that the dog is not a pet. The dog has to live with the livestock, etc. Most people that I know find it easier to just run the dog expenses in with the household expenses rather than face audit.

 

[silvercat76]

I am planning on claiming my chickens next year. My accountant actually told me to look into signing the property up as a farm because we have 30+ acres. So I was wondering what do people do that have backyard chickens and sell the eggs? Do I keep track of every expense I put toward my chickens this year? I have had chickens for four years and we just recently started selling every egg our chickens produce. How would I figure out how much electric cost us for the winter? I know it varies from state to state so anyone from NY with information would be great as well.

 

[Herb in PA]

I fill out Form F (Farm income) when doing my taxes. I report the few hundred a get in egg sales, and then deduct the cost of feed, chicks, the coop and other supplies. I grow about 1/3 of the feed, so I also deduct the tractor and garden fertilizer. Last year my farm operations lowered my tax bill by about $500 - $600.