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Just for Snafu

December 1st, 2014 at 02:30 pm

Last week snafu posted a comment asking a bunch of questions, and I just didn't get time to reply. So I thought it would be easier to just create a new post. My answers are in bold.

What was the outcome of the laboratory bill that was rejected by your insurer?

Haven't heard anything more yet, or received a bill. Just crossing my fingers I don't get one.

What expenses do you anticipate for your home based goat business?

Hay, grain, testing, shots, medicines, wormer, etc. I have all the numbers written down, but don't have it in front of me. No big expenses this year unless I decide to finish fencing the pasture.

What is the deadline for ROTH contributions for the year ending 2014?

April 15th I believe

$ 300. gross, $ ? net. What deductions do you anticipate? Medical?

$300 is NET.. No insurance, yet. He said if we do well, it will be something we can get in the future. Which doesn't bother me. I am still on my parents'.

Do you actually get paid every week or will they pay bi weekly, 15th & last business day of ea. month?
Will you get holiday pay or any other tangible benefit from your current employer in your final pay?

Paid every other week. No holiday pay, or other benefits at this time. But again, if we do well, they are options in the future.

If you possibly can eke out time, I suggest you open a separate [free of charges] bank account for your business. You need to know how much you gain in 'receivables, how much you expend in expenses and how much you have personally 'loaned' the business since you started or can figure out at least for 2014. There are so many tax deductions available to you for your home based business.

I have a separate bank account for the goats already. I have not counted it as a business, or put it on my taxes at all. My previous years all the profit has been put straight back into buying more fencing, etc.

As to do you plan to allocate payments from the buyer of the Cobalt? I have always made it a point to pay off CC two days before due date. ROTH has a deadline so I see that as a priority. I don't recall the interest rate on LOC. I'd loan the goat fund a set sum each pay until reaching the # 1K limit. You can snatch that back as soon as you have goat profit and slide it to you EF to $ 5K or whatever you've set as your target for 2015.

I'm planning to send the Cobalt payments straight towards the LOC. May send them to ROTH if I am running close to the deadline. CC is always paid weeks in advance, so no issues there.

Did you get that long list of winter ready tasks done?

Getting close with that. Just a few little things left.

2 Responses to “Just for Snafu”

  1. doingitallwrong Says:

    If your intention is to make a profit on the goats, you really should treat them as a business on your tax return. While you're required to report the money you make in sales on your tax return regardless of whether you treat it as a business or a hobby, with a business you can take a loss (if your expenses exceed your earnings) and offset your other income. With a hobby, you're still taxed on the income but you can only deduct expenses up to the income amount, only if you itemize deductions, and then only to the extent that the expenses (plus some other miscellaneous expenses) exceed two percent of your adjusted gross income. While the IRS likes to see you make a profit in three of the last five years for a business, it's not an absolute requirement if you can prove that you're running the business with the intention of making a profit.

  2. snafu Says:

    diaw, makes a good case for defining goats as a business, rather than a hobby. I asked questions in hopes of pointing out some transitions as you move from current employment to new career. I read your activities and wonder how you expand a 24 hour day as you get so much done!

    I suggest you track/intervene/follow up on that nasty lab bill because those things have a nasty habit of coming back to bite you months or years later! If you have one of those medical savings plans which expire at years end, best to use-up the credit. You're doing so well with allocating your assets. It's all those choices to check to see which serves you best. Often it's avoid interest costs or increases in investments like ROTH

    I hope you reward yourself as you step into a new role of Web Designer. I hope you know I'm cheering your every success and wanting you to enjoy making all these choices.

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