CHINCHILLA AS A BUSINESS

Many people wish to turn their hobby of Chinchilla Breeding into a Business.

This article was written many years ago, but for those wishing to turn their hobby into a real business....starting to keep accurate records is very important.  Again, this is just a guideline to start you in the right direction.

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With our ever changing tax laws, use the following as a guidline...Checking with a tax expert regarding any recent changes in deductions, etc. for your individual needs.

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EXPENSES

These are items that are completely written off each year.

  • Feed, Shavings, Hay, Dust, etc.
  • Medications or veterinary expenses
  • Dues and subscriptions to industry publications and associations
  • Donations made to industry projects
  • Utilities (if included in your home bill, you must pro-rate)
  • Travel expenses (for supplies, meetings and show)...These would include: mileage, meals, lodging, etc.
  • Entry fees at shows
  • Misc. Supplies - don't forget the raisins, dish soap to wash your bottles, paper towels for pelting, inc.
  • Phone calls related to the business
  • Labor hired

These are items that are not completely used in one year.  They are depreciated over a period of years that they are expected to last.

  • Breeding stock purchased
  • Cages
  • Tools (usually items over $100 value)
  • Air-Conditioners
  • Building used for your business

INCOME

Keep track of any income received in conjunction with your business

  • Animal sales (for breeding stock, pets or research
  • Breeders held over 1 years and sold are eligible for Long Term Capital Gain rates
  • Pelts sales
  • Related equipment or supplies sold
  • Boutique items made for pelts, etc. & sold
  • Any items you might produce and sell to others for use with their Chinchillas

Like any business you must keep accurate records of purchases, mileage, etc.  But when treated like a business it will have many benefits for you.

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