Tax implications

[ukrkoz]

Not really anywhere else to ask...

Anyone ran their chicken farm as "hobby farm"? There is tax deduction for that.
Thank you

 

[oldhenlikesdogs]

The IRS no longer allows tax deductions for hobby farms. I believe you need to show a profit, 3 years out of 5, and you must file schedule F with your taxes, and be a legitimate working business.

 

[cholland]

Yup a profit or it's a majority of your income. As a hobby farm you are supposed to keep records and claim any income. Doubt they would ever audit a backyard farmer. Unless you are selling a lot of eggs or raising chicks to sell, I think it would be hard to really show a profit taking into account expenses for feed, coop repairs, etc.
Try keeping records for a few months or a year and I think you'll find it's a wash even with a couple dozen birds.
Unfortunately as a hobby farm if you operate at a loss there is no deduction opportunity.

I figure if the extra eggs pay for the feed and bedding, etc. them my eggs are free and it's a cheap hobby.

 

[ukrkoz]

Thank you