Business or Hobby

[TradeRiver]

Curious as to how people are treating their maple syrup business at tax time. Business or hobby?

[unc23win]

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.

[johnpma]

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

[doocat]

When you start spending more then you make it's a business!!!!! Just a thought.

[jmayerl]

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.

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.

[johnpma]

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"

[unc23win]

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.

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.

[wnybassman]

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

[Moser's Maple]

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.

[PerryFamily]

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