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I've been doing a little research and trying to figure out if bee colony losses are tax deductable. It seems like livestock losses are tax deductable if you bought the livestock, but not if you raised it. I am assuming this would apply to bees. Has anyone been through this?

We do buy brood and queen cells and queens every year.

Thanks,
 

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I always just expense out the bees and queens I purchase as one would the feed and medicine to raise them. I don't know how you make any money trying to depreciate them. I want expenses right away to deduct from income. I will pay taxes LATER when possible. I would gladly expense out everything and carry forward losses.
 

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I've been doing a little research and trying to figure out if bee colony losses are tax deductable. It seems like livestock losses are tax deductable if you bought the livestock, but not if you raised it. I am assuming this would apply to bees. Has anyone been through this?

We do buy brood and queen cells and queens every year.

Thanks,
you have elap for your losses, you do have to assume some responsibility in a business.
 

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If you are buying brood and queens each year, those are deductible as replacement bees.
 

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Not sure for all your areas but there is a difference for me between hobbyist and commercial, aka a business. Short story - hobbyist can offset any sales with investment or losses but deductions can never exceed the profit - you're limited to breaking even. As a business you follow the business rules for deductions/losses.
 

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It might be different in the US, but in Canada my understanding is bees you purchase is an expense that is a full deduction (not depreciated). Any colonies that are lost can't be an expense, as you already claimed the expenses to purchase or raise them, and if they didn't die and you sold them, that would be taxable income. Just like if a barrel of honey gets spilled on the floor; the costs to produce that barrel are an expense, and the sale of that barrel if it wasn't spilled on the floor would be taxable income, therefore it can't be an expense. In an audit expenses have to be proved as something you actually spent.
 
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