The IRS doesn’t ask how good you are with dogs or cats — it asks how good you are with numbers. If you read our last post, you already know what’s on the line. Under Section 183 — the “Hobby Loss Rule” — an activity the IRS classifies as a hobby can’t deduct its losses…
A closer look at the first — and arguably most important — factor the IRS uses to decide whether your breeding program is a business or a hobby. Taxes in a breeding program affect you whether you are a hobby or a business. If you are a hobby, you report all gross income and no…
Is your breeding a program a Hobby or a Business? And does it matter? A plain-English guide to the nine factors the IRS uses to decide whether your breeding program is a business — and what it costs you if they decide it isn’t. There is a question sitting underneath every tax return a breeder…
Many ethical breeders pour their hearts into raising healthy, well-socialized puppies and kittens—but still struggle to make their breeding program financially sustainable. The problem usually isn’t a lack of dedication. It’s that most breeders were never taught how to run the business side of their breeding program. As both a CPA and a former Maine…
