I made enough money this year with bees (honey, wax, and queen sales) to prompt me to want to declare it a business, so I can deduct the expenses from my profits and not have to pay tax on all the income. Does anyone know what I have to do to properly document my conversion from a hobby to a business? I think I need to establish a cost basis for the equipment and bees, etc. What, if anything, should be amortized and depreciated? Any practical advice from someone who has done it (or is a tax accountant) would be greatly appreciated.
Also, what number of hives seems like the sweet-spot for making a decent profit for amount of work involved? I've done 20 in the past, but what number seems ideal for a one-person operation (with my the slave labor help from my children)?