Breeding income
 

If you are a breeder, do you report all the money you receive from the sale of puppies to the IRS. No, I am not one of them. I am interested in breeding but not to make money. I know like many of you say I will be lucky to break even if done properly. So how do you handle this income on your taxes??? Do you report any of it??? If so do you report what you have left after paying all the bills and up keep of the puppies?? Do you pay yourself for the care of the puppies??? I do work full time, so this may make a real impact on taxes. Do you sell your puppies from a Kennel name or your own name??

Thanks
Tauni

I can only give you information from the breeder I assist in whelping. Most of her payments are in cash, and so it is not much of an issue with reporting/IRS finding out anyway, but these are her thoughts on the matter.

1) She only has 1 female and 1 male, and she breeds her every other heat, so her income from breeding is not what you would call large. 2) Between costs of caring for all dogs involved, she usually about breaks even, so she opts to not report the earnings from the puppies, due to the fact that she really makes very little money (not really enough to concern the IRS).

Now, if you have many sets of dogs and are constantly breeding year round, it is a different story. First off, you must get a special license to breed if you have more than two bitches in the household that you use for breeding. If you have a breeding license, you must realize that you are looked at specifically as having a 'dog breeding practice' and you should then most definitely list your earnings on your taxes. You should consult with the firm that prepares your taxes as to possible deductions, and what in fact you should and should not claim.

Also, please research and attempt to get a mentor before breeding, for the sake of your doggy parents and puppies.

Just my 2 cents on the issue.

Edit: Oh, and I forgot, the listing. The woman I work with always lists under her own name, not a kennel.

[ First off, you must get a special license to breed if you have more than two bitches in the household that you use for breeding. If you have a breeding license, you must realize that you are looked at specifically as having a 'dog breeding practice' and you should then most definitely list your earnings on your taxes.

I wonder does this differ from state to state??? I live in Pennsylvania.


thanks
Tauni

I will check out the state to state thing for you.