My wife started a dog breeding business so how do we show our expenses and money lost?

rmcm6 — Wed, 05 Jun 2019 18:39:58 GMT

The dog required regular vet checks as well as an emergency room visit to an animal hospital. That expense was over $1300.00 there was also the required vaccinations and feeding expenses for 9 weeks that the remaining puppies stayed with us. Total loss in this whole experience was about $2000.00. Would it be worth the time and added expense to file and claim this loss and if it is worth the time how do we do that?

Unfortunately, the IRS generally views dog breeding as a...

PatriciaV — Wed, 05 Jun 2019 18:40:00 GMT

Unfortunately, the IRS generally views dog breeding as a hobby and not a business. You may only deduct hobby expenses equal to hobby income. You cannot take a loss on a hobby.

To enter this in TurboTax, search on "hobby income, loss" and click the jump-to link to go to the start of that section.

If you believe that you are in this business with a profit motive, you may report the income and expenses on Schedule C, available in TurboTax Self-Employed

See these two articles for more on how the IRS determines if your activity is a hobby or a business:

topic My wife started a dog breeding business so how do we show our expenses and money lost? in Deductions & credits

My wife started a dog breeding business so how do we show our expenses and money lost?

Unfortunately, the IRS generally views dog breeding as a...