I am a stay at home mom and I am breeding my dogs this year. Should I show that income as hobby or self employed next year?

[Nwasher1]

This will be my first year breeding my dogs. I have set up a website, FB page and an Instagram account for my dogs.

[MayaD]

A key feature of a business is that you do it to make a profit. Consider nine factors when determining whether an activity is a hobby. Make sure to base the determination on all the facts and circumstances.

For more information please check : Hobby or Business?

[Nwasher1]

What happens if I pick the wrong one between hobby and business? I just want to pick the right one and it’s so confusing. If I file it under business would I put the income under schedule C? If I put it under hobby income would I enter my net income? 

[Vanessa A]

Dog breeding is generally considered a hobby, not a business, unless you are in a puppy mill/kennel type situation. 

When you put it under hobby, you will enter your gross income.  Your hobby expenses are not deductible for tax years 2018-2025.

[Nwasher1]

I’m definitely not a puppy mill or kennel. I only have two female dogs and they live in the house with us as part of our family. I would only have about 2 litters a year. 

[Vanessa A]

With two dogs, it would be a hobby.