Tax brakes for Breeding??? - Page 2 - YorkieTalk.com Forums

majic50 · 02-05-2008, 08:25 PM

My accountant seems to think that since I receive retirement and Social Security, the IRS will be more likely to look on my breeding dogs as a hobby than a business?

Sunnyd · 02-06-2008, 06:32 AM

Ok, guys I'm a CPA so here's a little of my input. Yes, you can depreciate any dogs you purchase for breeding purposes. You can not depreciate the dogs you bred. You do not have to have a business plan, as long as you can prove your purpose in this "business" is to make a profit. Regardless of your age or income status. However, if you continually have a loss they are going to consider it a hobby. You should show a profit 3 out of 5 years. That's about it. This is treated the same as any other farmer raising cattle, sheep, etc.

majic50 · 02-06-2008, 08:08 AM

Quote:

Originally Posted by Sunnyd

Ok, guys I'm a CPA so here's a little of my input. Yes, you can depreciate any dogs you purchase for breeding purposes. You can not depreciate the dogs you bred. You do not have to have a business plan, as long as you can prove your purpose in this "business" is to make a profit. Regardless of your age or income status. However, if you continually have a loss they are going to consider it a hobby. You should show a profit 3 out of 5 years. That's about it. This is treated the same as any other farmer raising cattle, sheep, etc.

Thank you!! That is very helpful!

troubletb · 02-06-2008, 01:47 PM

Quote:

Originally Posted by Sunnyd

Ok, guys I'm a CPA so here's a little of my input. Yes, you can depreciate any dogs you purchase for breeding purposes. You can not depreciate the dogs you bred. You do not have to have a business plan, as long as you can prove your purpose in this "business" is to make a profit. Regardless of your age or income status. However, if you continually have a loss they are going to consider it a hobby. You should show a profit 3 out of 5 years. That's about it. This is treated the same as any other farmer raising cattle, sheep, etc.

Don't you have to charge tax and report any income (sale of puppies) ?

02-05-2008, 08:25 PM	#16
majic50 YT Addict Join Date: Dec 2006 Location: Michigan Posts: 299	My accountant seems to think that since I receive retirement and Social Security, the IRS will be more likely to look on my breeding dogs as a hobby than a business?

02-06-2008, 06:32 AM	#17
Sunnyd Senior Yorkie Talker Join Date: Apr 2005 Location: Linwood, KS Posts: 249	Ok, guys I'm a CPA so here's a little of my input. Yes, you can depreciate any dogs you purchase for breeding purposes. You can not depreciate the dogs you bred. You do not have to have a business plan, as long as you can prove your purpose in this "business" is to make a profit. Regardless of your age or income status. However, if you continually have a loss they are going to consider it a hobby. You should show a profit 3 out of 5 years. That's about it. This is treated the same as any other farmer raising cattle, sheep, etc.