Skyjack
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Deductions claimable for a breeding hobby
Skyjack replied to Skyjack's topic in General Dog Discussion
Thanks everyone, I agree. I'm not in it for a profit and don't want my hobby to be classed as a business. This financial year I have sold seven pups. I will be proving to the accountant that at 100% claimable there is no profit. He is a CPA and I have been with him for 18 years. Thanks for your comments and advice. -
Hi All, . Just finished my 2015/16 tax return. In this return I entered the dogs as a hobby as this current year we have sold 7 pups. To align with my accounts thinking is to claim everything involve in breeding and showing. His take was 100% claim on every claim except for only 50% for both petrol to shows and show entries. He has his mind fixed that it is towards a business. I let him know that I have not intentions of sales being over $20k when at that point I can claim accumulated past loses. He is struggling with the concept of hobby not a business. All up using his guidelines I lost $5000. I have started to put the current years figures on paper. If I have sold only for this financial year I want to claim everything I can as a deduction to simply break even. I have no problem paying taxes but will not be going over $20 K in sales, every. So I'm asking for people's experiences and what outgoings do they use and what percentages of them to show outgoings usually excede income. Thanks for your help and advice. Do I need a special ruling. My accountant is thinking business, he sees shows as 50% pleasure hence the 50% outgoings claimable for fuel (.66 cents per K one way) and show entries. Skyjack