If someone, owns 6 Registered Dogs, and is breeding the dogs, would you report this on a schedule C or F? They don't have a "Farm" per say, they have converted their basement into what's considered the living quarters for the "Dogs". I've never actually done someone that has breed animals. so any help or suggestions would be appreciated. When it comes to the Dogs do you Depreciate them and for how long? I see nothing that states how many years. Thank you for your help. If I've left something out let me know.
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This topic
has been discussed extensively on other boards and the consensus was 7 years for depreciation and Sch C. -
Dog Breeder
If they had no income for 2006, would you still depreciate the Dogs over 7 years?
She actually bought one dog in 5/96 for $2,460.00.
One in 12/97 for $3,020.00.
One in 5/98 for $5,770.00.
Two in 4/4/03 for $3,210.00 a piece
One on 11/11/03 for $3,210.00
She had $16,425.00 in expenses for the dogs for 2006 which includes, Medications, Supplies, Food, Licenses, and Vet bills (which they are getting a figure on this)
They converted their cellar into a "Dog House" for all the dogs which cost them $22,000.00 to do, and they put a "Invisible Fence" up that cost over $4,000.00.
Would you consider all these expenses as Start Up costs?
She didn't start the business untill January of 2006, and has breed the females and didn't have litters until 2007.
So my questions are:
#1. Do I list all the dogs to depreciate them on 2006, when she opened her business?
#2. Do I expense all the cost out individually or as start up cost?Comment
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Business now: hobby then?
If she was doing the same thing before she opened her business, are you sure it's a business now? If it was her hobby before, maybe it's still her hobby now. Make sure she's getting her documentation in order, business plan, separate bank account, etc.Comment
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