Doing taxes and with new pay pal and zelle regulations thought best to make hobby into a business? However tax guy wants busines to be filed as farm business. I cant jump through so many hoops ,regulations and paperwork. Only made 1600.00 total . Can i just do retail business ? Need help. Also contacted usark and waiting for reply. Need taxes done fast so i can buy mice for season coming up
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You would fall under the same category as a pet store so I would assume retail is fine. What state do you live in?
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I live in Arizona
But i breed reptiles not resale them .
But you do sell them, and make a profit from them, so it is retail
I hope you are right. Thanks
Did you MAKE $1600 (net) or SELL $1600 (gross)? Either way, I can’t imagine there is a benefit to creating a business at all. At least, not at this point. If you MADE $1600 in profit, just declare the revenue on your personal return as additional income. If you SOLD that amount, you could probably quite quickly net it to zero…
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Because of zelle and paypal regulations. Gross sales 25,000.
No tax expert.
But any deductions need to be applied. This will bring your income down. Then that amount you will pay taxes on. Any accountant should know this. And if under a certain amount (this will very per state, but not federal) you could just clame it as hobby, not a business. Or as @dlhirst stated, you should just be able to list at as additional income. But clame everything you can to get it close to $0 as possible, (water, electric, bedding, food, milage, cleaning supplies, hardware, vet bills, software, memberships, advertising, cost of the adult snakes from breeding. This would be your over all cost/expense for all snakes, not just the ones sold.)
Any accountants out there, please correct me if I am wrong.
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Question remains . File as a retail or as a farm. All deductible things done. Groos sales 25,000.00
But made 1600.00 out of gross sales. My question is as a breeder file business as a retail or farm ?this is my question
There should be no issue with you filing as retail. That said Arizona must have a unique tax structure. I own several businesses in California, and what dictates the tax structure of each is the type of business entity they are filed under. One other thing that you may need to consider, is sales tax, if Arizona is a sales tax state. If so, the sales tax administration for your state is going to expect their cut as well.
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