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My daughter was raising an animal for FFA which was sold.
When listing the expenses can I also add mileage in addition to the cost of feed, supplies and veterinary bills?
If it was a business, you could but FFA/4H is not considered a business and does NOT require a Schedule 1.
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It depends. As you indicated it is not a business (reported on Schedule C), rather a hobby and/or a learning experience. Expenses for a hobby are not allowed on the tax return,
You can decide if it is hobby or business income. This IRS link will help you: Business or Hobby?
Key elements:
If it is a hobby, then you would report the income using the steps below. Other Miscellaneous Income:
It does require Schedule 1, but not Schedule C or F.
Because it is not a business, I don't think you can use the Standard Mileage Rate. But if you can reasonably come with up actual expenses for vehicle usage, I would think that would be fine.
@DianeW777 wrote:It depends. As you indicated it is not a business (reported on Schedule C), rather a hobby and/or a learning experience. Expenses for a hobby are not allowed on the tax return,
There is a special rule for 4-H and FFA projects that DO allow expenses when it is reported on Schedule 1.
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