Hi PBCool - Thanks for joining us today!
First you need to determine if selling kittens is a hobby or a business. Here is a great link to assist you with that:
https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a...
The IRS generally views breeding as a hobby and not a business. Hobby income still needs to be reported on your tax return. You can only deduct hobby expenses equal to hobby income. You cannot take a loss. For Hobby Income:
When in your TurboTax account:
- Click on Federal Taxes tab
- Choose Wages and Income
- Scroll down to Less Common Income and click Start
- Scroll down to Miscellaneous Income, 1099-A, 1099-C and click Start
- Click Start to right of Hobby income and expenses
If you have determined that it is a business and not a hobby, you may report the income and expenses on Schedule C - Profit and Loss from a Business.
This link from the IRS explains further:
https://www.irs.gov/newsroom/earning-side-income-is-it-a-hobby-or-a-business
TurboTax can definitely help you with either scenario.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
