Curious as to how people are treating their maple syrup business at tax time. Business or hobby?
Curious as to how people are treating their maple syrup business at tax time. Business or hobby?
Trade River Sugar Bush
Atlas, WI
3'x10' Smoky Lake Evaporator
Polaris 800 Ranger UTV
36' x 56' Sugar Shack
2016 300 taps
2015 - 200 taps
2014 - 200 Taps
2013 - 200 taps
My opinion is if you spend more than $500 a year on supplies and operation costs (I think hobbies can be claimed up to $500) you should treat it as a business. An agricultural business /farm which produces a crop for profit. To each his or her own, but I think I it's worth claiming. I realize that if it's a hobby you probably don't mind spending a little money, but if you claim all your expenses chances are you'll get some back (which you can and most likely will spend on more supplies) that's how it goes.
Jared
I think that if you expense out some of the costs associated with the hobby that you will also need to show some revenue as well. I'm not completely up on the laws regarding small scale farmin
When you start spending more then you make it's a business!!!!! Just a thought.
What about the guys that spend $50,000 on a new bass boat to fish a few weekends a month and maybe win $100 a year in a local bass club tournament? My point is that there is a huge difference between a hobby and a business, seems like many people in maple blur the lines.
custom made 2x7 intensofire
With SL pans
250 deer run
300 3/16 (new 2016)
500 sacks around the neighborhood
Found this on the IRS website:
"You are in the business of farming if you cultivate, operate, or manage a farm for profit, either as owner or tenant. A farm includes livestock, dairy, poultry, fish, fruit, and truck farms. It also includes plantations, ranches, ranges, and orchards"
Do they claim the $100? I had 2 points 1. Was that if you spend over $500 if you want to claim it it can't be a hobby. 2. Was that there are benefits tax wise if you claim expenses and income from syrup you will get something back. If you don't claim it you can't get anything back.
Last edited by unc23win; 01-04-2017 at 09:23 AM.
Jared
I had two seasons (2005 and 2006) where I had to claim my winnings from tournament bass fishing. I believe it was because both times I won more than $600 and the organization sent me a W2. Of course it was easily negated with deductions
Noel Good
1998 to 2009: 15 taps on buckets, scavenged fire pit and pans
2010: New 2x4 SS flat pan w/preheater
2015: New to me Lapierre 18x60 raised flue, new shack, new everything!! 59 taps 23.75 gallons
2016: 85 taps 19 gallons
2017: Purchased 2.5 acres and tubed half with 3/16. 145 taps total 49.25 gallons
2018: 200 taps (162 on 3/16ths 38 on buckets) New NextGen RO 63 gallons
2019: 210 taps 73.5 gallons
2023: 210 taps 89.75 gallons
www.wnybass.com
I guess I view this as if you offer a good or service to a paying customer then you are considered a business. If it was a hobby then you would be giving away the end product and if you accept a donation for said product then that's up to you.
Now if you sell your products then ultimately it's up to you and your business model if you turn a profit and are a successful business.
Jake Moser
Moser's Maple
2 beautiful little girls
1 wife that's become her mother
www.facebook.com/mosersmaple
I absolutely treat as a business
I depreciate my big equipment expenses and write off in full the rest of it
I claim any income that will also claim it ( Bulk, stores, restaurants.....)
Cash goes in my pocket, checks written to me personally are treated as cash