>>> A question for breeders and others... Hey,Ya'll! Okay, I have a questions more towards breeders but is for anyone to answer (the reason it's not in the breeder section). What happens concerning taxes? I was aimlessly going through different sites looking at puppies of all kinds to find a breed right for my relative when I came across a site (Labs, I believe) where she states the puppy's prices includes taxes. She isn't a petstore, broker, etc. She only had 4 breeding females and 2 males. She stated that many people have 4 or more litters a year and are probably making more than 5 or so grand a litter and are living off the income, so why not pay/charge taxes since it's basically a job (even if you are a hobby breeder). I know there is a few breeders that are probably putting their all into breeder (which means they decided not to work outside of breeding), but what happens when it's time to submit your tax information? Do you even file taxes if you don't have a 'regular' job? and if so, when they ask if you make any other income do you mention and show the sales and money you make when breeding (including receipts for purchases/bills you had concerning what you put in)? I'm not trying to knock anyone who have several litters a year! To each their own. And it's your own business Just trying to figure out if it's required for you to mention that your are selling pups when filling taxes, especially if you are getting $20,000 or so a year selling pups (minus the expenses put in). Personally, I don't think many breeders think about it because they don't see their babies as 'goods,' but when you're selling something, they are considered goods by law. I'm hoping someone at least thought about taxes. (Please don't bash anyone in this thread just because you don't agree to something. I am not trying to point anyone out or cause trouble, just asking a simple question)... If you don't feel comfortable mentioning it on this thread, I would still love to hear from you in a PM! I know how rude and destructive people can be with their opinions. It also concerns me that someone who has thought about taxes wanted to go the route of paying taxes needed to get a licences of some type and then are being called a puppymill or something demeaning because they wanted to go that way. I have seen many people saying they see 'red flags' because the breeder are licences in their city/county. I know someone who breeds exotic and puppies and are USDA licence because you have to have it. But because a few people say it's bad, everyone follows what they say. |
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I know many breeders only have a couple breeding females and lose money out of breeding but do you still mention it when you filing taxes? |
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IDK, for certain but would expect that some claim the income, some do not, just as with other out of home businesses. Also, I would expect that most breeders end up in the red at the end of the year. In other words, they don't make any income that isn't offset by expenses. Do retail stores charge sales tax on animals sold there? I've never purchased from one so don't know. |
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I don't know how that works as far as breeding.. I am not sure if it is considered a business. I have a home based business and the only people I charge taxes to are the sales made in the state I live in. If I travel to another state (to do a bear show) and I sell in that state, I have to get a temperary permit and charge sales tax for that state and pay that tax to that state within a certain period of time after the show. So i would assume that if someone sold in thier own state, they would have to charge and pay taxes on that income. If they sell over the internet and to someone in another state, they do not have to collect or pay those taxes. But one of the conditions (at least as far as California goes) is that they have to ship the "item" out of state. They cannot have the person come to California and pick it up or they do have to charge taxes. |
Thanks to all that replied!! I'm getting that you don't need to charge tax... There's a breeder near that does tax her pups and I'll ask her. She's a tax consultant so I'm sure she knows all about it! Thanks, again! |
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