FFA Livestock Project

[lmeeks]

How do I report expenses from the sale of a livestock project in Turbo Tax?  We received a 1099 MISC for the sale but I don't know where to report the expenses.  On Schedule 1 it won't let me type in the expenses.  I would like to be able to E-file the return

[DaveF1006]

You would need to enter it as Business income and expenses. 

1. Open or continue your return in TurboTax.
2. Search for self employed income (use this exact phrase, don't add a hyphen) and select the Jump to link at the top of the search results. If using Turbo Tax Online, select the help button to do the search or if there is a magnifying glass at the top right of the program, use that.
3. Answer Yes on the Did you have any self-employment income or expenses? screen.
   • If you land on the Your 2022 self-employed work summary page, select Review next to the work you're adding income for.
4. Answer the questions on the following screens until you arrive at Let's enter the income for your work.
5. Select the form that applies to your situation and select Continue. Here you can state that this is from Form 1099-MISC.
6. After you enter income, then there will be a section where you can enter all the expenses that were associated with this sale.

[lmeeks]

This is not a business.  Wouldn't it be reported on Schedule 1 as other income line 1z and then expenses on 24z other adjustments?  I just don't know where on turbo tax I can put the expenses in.  I don't think he should have to fill out a schedule c since it's not a business.

[CatinaT1]

If it is not a business, it would be classified as a hobby. Hobby expenses can not be deducted. See more information below.

Taxpayers must report on their tax return the income earned from hobbies. The rules for how to report the income and expenses depend on whether the activity is a hobby or a business. 

Is it a Business or a Hobby?  A key feature of a business is that people do it to make a profit. People engage in a hobby for sport or recreation, not to make a profit. Consider these factors when determining whether an activity is a hobby. Make sure to base the determination on all the facts and circumstances.   
  

How to Deduct Hobby Expenses. Beginning in 2018 and lasting through 2025, miscellaneous itemized deductions are no longer deductible and therefore no hobby expense is able to reduce hobby income. 
  

Additional Resources: 

When the IRS Classifies Your Business as a Hobby 

Publication 525, Taxable and Nontaxable Income 

Publication 529, Miscellaneous Deductions 

Publication 17, Your Federal Income Tax