Form 1040, Line 18 Question

Discussion in 'Money Talk$' started by Don, Mar 18, 2014.

  1. Don

    Don
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    Folks - I've been through the instructions for both the 1040 and Schedule F at least a half-dozen times; and I've tried talking to a couple of tax preparers; but I'm no closer to understanding than when I started.

    Why does Line 18 of the 1040 seem to treat a loss as income? OR -- how do I actually subtract the loss on that line? Or am I over-thinking this, and not properly applying the negative sign?

    (BTW: It's a "hobby farm" kind of thing; loss was only in the area of -$1,700, but it could still help overall tax refund)
     
  2. Salty

    Salty
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    If it is a hobby - then it is not tax deductable.
     
  3. Don

    Don
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    Way I read the rules, it's not tax deductible *only* if I don't intend to turn a profit. This year was start-up; I'm pulling 8-12 eggs a day now. You know how much people are willing to pay for free range eggs? It's mind-boggling.

    So a $10 bag of poultry feed lasts about 2 weeks, while I'm pulling $2.50 every 2 days. Won't get me rich, but I won't be claiming a loss next year.
     
  4. Bro. James

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    I hope your poultry feed is not laced with growth steroids.

    It is hard to find untainted stuff--nothing new.

    Give poultry compost piles and other places to forage for bugs and worms and seeds. I remember grandpa feeding chickens grits and other table scraps.

    It is a good idea to have a rooster--for better eggs and hen replacement.

    There is also a market for good compost.

    Be ready to get audited. All tax bases are seriously eroded. The IRS may be foraging in the back yard businesses soon.

    It cannot be a hobby and a business. You have to be trying to make a profit--with everything put in at risk.
    Have a blessed day.

    Bro. James
     
    #4 Bro. James, Mar 19, 2014
    Last edited by a moderator: Mar 19, 2014
  5. Earth Wind and Fire

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    Outa curiosity.... what kinda chickens do you have? My red hybrids are great layers. I also free range when I can (when the hawks aren't around). But I dont write it off on taxes though.
     

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