Discussion Archives:Proper Entity for Dog Breeding Business

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Tax Questions --> Proper Entity for Dog Breeding Business

Jccaa (talk|edits) said:

1 February 2007
I am an EA in Florida.

I recently had a client come to me who has several champion show dogs who is starting a breeding business to sell the puppies of these champion dogs. My question is the proper tax entity to set up for this business. Is an S-Corporation appropriate for this?

Any information from those experienced with this type of business would be greatly appreciated!

Mtmckeecpa (talk|edits) said:

2 February 2007

I have a client who breeds Labro-doodles, and works FT in a related field.

Just keeping it simple for now, this business is a SMLLC.

I see no problem with an S corp down the road.

Jccaa (talk|edits) said:

2 February 2007
Is there anywhere I can find specific documentation for this industry? Depreciation rules, etc. I saw some discussion on the depreciation issue, but would like to see some regs or further info.

Mtmckeecpa (talk|edits) said:

2 February 2007
I didn't see anything specific per se on dog breeding, info may be out there but I didn't see any.

The only issue I ran across last year, was that the client purchased the female dog for $13k but was not able or ready to breed so I didn't take the 179 but will take this year as the dog was able and ready to have pups. The basis for that decision came from the IRS pub on farmers. That dealt with breeding stock.

Deback (talk|edits) said:

February 2, 2007
You can find more discussions relating to dog breeding by searching Tax Almanac for "dog breeding." Click the following link: Search.

Sw (talk|edits) said:

February 2, 2007
[purchased the female dog for $13k but was not able or ready to breed so I didn't take the 179 but will take this year as the dog was able and ready to have pups.] I didn't think you could do 179 if purchased last year and ready to breed this year?

Jodell (talk|edits) said:

12 February 2007
I have a dog kennel for breeding, training and raising hunting dogs. I would like to know if I can use form Schedule F or do I have to use Schedule C or C-EZ.

Deback (talk|edits) said:

February 12, 2007
Jodell - I've been using Sch F for 32 years for any breeding animals and have never had a problem. None have ever been audited. Sure, use Sch F. It's more suited for your type of business.

Rose3304 (talk|edits) said:

16 February 2007
Hi, I read in the Schedule F instructions, if you are breeding dogs or cats, you can use Schedule C or Schedule F. The forms are similar, but Schedule F has more specific catagories for expenses, ie. Vet services etc... I also read in another discussion thread that IRS doesn't mind which form you use as long as you report the income. Makes sense to me. I will use the Schedule C though. Is it true that you cannot 179 the cost of the breeding bitch until she can actually breed?

Kevinh5 (talk|edits) said:

3 April 2007
yippee (or is it Yip Yip?) I've got my first Dog Breeding tax return to do! Standard poodles.

PVVCPA (talk|edits) said:

April 4, 2007
Welcome to the big leagues! Now you get to put the b-word on a tax return. Well, you have probably done that already.

Michaelstar (talk|edits) said:

4 April 2007
Come on - Standard poodles do not go Yip Yip - they were originally bred as hunting dogs - very smart ones at that - they BARK!

Kevinh5 (talk|edits) said:

4 April 2007
Well, the sub-standard ones go yip yip. Until she makes a profit, I'm going to question them. See if they're smart enough to answer questions on this forum.

spam deleted

Personal tools