I sell eggs/breed chicks from my home. I am not just selling accidental surplus, but I am planning on breeding chicks for sale. My start up costs were $2,000+ but my chickens had to mature, so only sold $100. II don't want to file hobby because obviously I don't have the income to offset those expenses. I certainly hope and plan that future costs will just be maintenance/feed and that sales will cover that plus provide some profit. Is there a certain margin of profit you have to have? If I file this as a business, take start up costs as expenses, but then over the next couple of years don't end up doing as well as hoped profit-wise in the future, can I change to hobby for future filings? I hate to whine that it's not fair, but to be required to report cash sales and pay tax on that while at the same time having to spend money on feed and other supplies and never be able to deduct those expenses seems a little, well, unfair. Any suggestions or ideas?
