Confusion with having to File taxes

[Allycat94]

So my husband and I have a very small hobby farm, literally everything we have (Turkeys, chickens, pheasants, pigeons, rabbits) are all on 2 acres of property. And we have some confusion when it comes to having to file taxes. If we sell our chickens, or our hatching eggs, at what point do we have to file? How much can we make before having to file? What forms do we have to file? Thanks in advance.

 

[lazy gardener]

You need to speak with an accountant who is familiar with YOUR STATE business codes, preferably also has experience with farming issues. Keep meticulous records of all of your expenses: Egg cartons, coop build, tools to build the coop, coop bedding, tools to manage coop and run bedding, fencing, building materials, advertising. Are you selling garden produce? Include the cost of your seed, fertilizer, insecticide, tools, grow lights, electricity for the same. Got a LGD? Perhaps you can deduct the cost of dog food and vet bills.

Then, there's the gas: every time you take a trip to town to pick up ANYTHING that will be used for your homestead, keep track of the mileage.

Liability insurance would also be deductible.

It would not be unreasonable to expect that you will actually show a loss each year! Farming is a good way to go broke while having fun and getting exercise.

 

[Allycat94]

Okay thank you. I will get in contact with a CPA as soon as possible to find out. We started looking into FSA loans to possibly get a loan to get a large farm for cattle too, but they need at least 3 years of farming records such as bill of sales, or schedule F tax records, so I guess I will just add in these too, just to make sure we are fully legal in all aspects, even now with just birds.

You aren't kidding about that, we put more money in the birds than they are worth or will ever get back out of them. Thank you for the reply!