How do you pay taxes on your farms?

[TwistedTayy]

I’m not really sure where to put this but here we go.

For those of you that offer hatching eggs, chicks (or other poultry babies) do you deduct your expenses on 1099-f? I’m currently looking into how I want to scale up (website, building chicken barn, etc) and curious how y’all do this.

Another option would be to register a business and do things through that. But also hitting a wall on the best way to do that. Any advice anecdotes etc would be much appreciated.

 

[Aunt Angus]

I’m not really sure where to put this but here we go.

For those of you that offer hatching eggs, chicks (or other poultry babies) do you deduct your expenses on 1099-f? I’m currently looking into how I want to scale up (website, building chicken barn, etc) and curious how y’all do this.

Another option would be to register a business and do things through that. But also hitting a wall on the best way to do that. Any advice anecdotes etc would be much appreciated.

I am registered as a small scale producer. I am in the process of starting a sole proprietorship. It's easy, depending on where you live. In my county (I outlive in a city), all I need to do is file a fictitious nsne/DBA notice in my newspaper and register my business with the govt. I don't even need a license. You might contact your Chamber of Commerce or similar entity. It's hard to give definite advice when every area does things a lil differently.

For taxes, I have to prove that I make a profit for 3 of 5 consecutive years. I claim profits as "additional income" until then. Once I get past the 3 years of profits, I can write off business expenses on a 1099 for self-employment. I'm on year 2 now, and I make a tiny profit after paying for supplies and feed - haha!

But I won't register as a farm because this is not my main source of income. Selling eggs is my side hustle! If it were my main business, I would probably register as a farm.

 

[nuthatched]

I am registered as a small scale producer. I am in the process of starting a sole proprietorship. It's easy, depending on where you live. In my county (I outlive in a city), all I need to do is file a fictitious nsne/DBA notice in my newspaper and register my business with the govt. I don't even need a license. You might contact your Chamber of Commerce or similar entity. It's hard to give definite advice when every area does things a lil differently.

For taxes, I have to prove that I make a profit for 3 of 5 consecutive years. I claim profits as "additional income" until then. Once I get past the 3 years of profits, I can write off business expenses on a 1099 for self-employment. I'm on year 2 now, and I make a tiny profit after paying for supplies and feed - haha!

But I won't register as a farm because this is not my main source of income. Selling eggs is my side hustle! If it were my main business, I would probably register as a farm.

Bookmarked for reference, good info!

 

[Aunt Angus]

Bookmarked for reference, good info!

Glad it helped!

 

[RiverOtter]

Have you called your county extension office, and looked up what state services are available to you?

I'm in NY, and there's free financial help and advice from www.nyfarmnet.org
Always see what kind of support for agriculture and small business is available to you

 

[GreenAcres Homestead]

We raise rabbits, quail, ducks, geese and chicken's and go through a lot of feed and I have spent a lot this past yr in building coops and hutches. I have been doing taxes myself for over 50 yrs and over 20 as self employed in real estate which I no longer do for I am retired. But I have done internet sells for many yrs and made a lot of $$ and now we raise our animals and sell eggs. So yes we claim our business with our assumed registered name at the tax office. To be safe for an audit we claim as a hobby and we write off everything we spend even if it looks like we are in the red due to we don't sell as much eggs as we spend on feed and supplies but that's life. I use TurboTax and have over 20 + yrs and it checks if your changes are good for an audit. I NEVER ever pay their extra $100+ for their so call help if audited ect it's a waste of money again I used them over 20+ yrs. I just used them this yr and got our refund no problem with our negative from our farm in sells ect. I am not afraid of doing taxes I was taught how to do tax's by my math teacher in the 8th grade many many moons ago when it was on paper