OK. Third year, 17 hives, harvested from 8. This year I started tracking income/expenses, with an eye toward losing a little money on my taxes. This year I had approximately $5K go in and out of the account, not enough to justify professional tax preparation. (Surprising to me- to date I'm only a couple hundred in the red and still have enough honey left to come out ahead.)
Started plugging the numbers into my accounting software but the catagories don't seem to make sense. I'm a contractor, do my own taxes, and am familiar with Schedule C, (Profit/Loss from Small Business). Should I be looking at Schedule F (Farm income)? Or is this Hobby Income? Am I going to prison?
Charlie, Schedule F seems simpler to me, perhaps not at first but in the long run. Several different agri. ventures can fit into 1 schedule F. I use it for polli money, honey, grape vineyard, land rentals, and lumber harvests. I've considered schedule C, but consider F to fit my needs better....
I know it's a lenghty conversation but what are some of the benifits of schedule f?
I'm have an Inc I could just file under?
Thought or can someone point me in the right direction to educate myself?
I can't speak to the advantages or disadvantages of schedule F. I was already doing F and the bees, honey, and pollination easily fitted in. I have read some good arguments for Sched C here on Beesource.
Cg3, your first line is exactly where I'm at too.
I did a beesource search on taxes and after reading a few threads I'm going with schedule f, and at least for this year, an accountant. I want to find one that will teach me as they're doing this years taxes. I'm glad you asked the question, I'd planned on doing the same.
Keep in mind that good bookkeeping is primarily designed to help run your business more profitably with being able to create a tax return from the numbers being a by-product. If the categories don't make sense yon need to create your own to meet your needs. In QuickBooks, for example, you can go to chart of accounts, select "new" and create the categories you need.
If you are not familiar with setting up your accounting software I strongly suggest you get a professional to help you get started. It will save you time and money in the long run.
I use the F form with broad categories like "material" and "Sales". I just keep the sales of my different agricultural products on my notes should I ever get audited.....
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