My husband and I raise chickens and other birds/poultry. We were wondering, if we were to sell chickens or the other birds or the eggs for other people to hatch, how much could we make from that before having to file taxes? And if we do, which forms do we file?
The answer to this question is more complicated than it may appear, as it depends upon many factors. Assuming that you and your spouse already are filing a tax return and there is sufficient income to require you to file annual tax returns, then you must report all income from the sale of the items you sell. You would report the sales activities on IRS Form Schedule F. Also, you would report the same information for Pennsylvania personal income taxes.
Refer to IRS Publication 225, Farmer’s Tax Guide, for detailed information on both reporting income and expenses.
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Answered by: William B. Boles, CPA, is founding director of Boles Metzger Brosius & Walborn PC in Harrisburg, Pa.