[ApplegateRanch]

Back when we raised & showed, there was another glaring difference between breeders and puppy mills, which also led to a second problem...

We HAD to declare any income from any sales; but were not allowed to take any expense deductions for our hobby, unless we could PROVE it was a business, AND made a "reasonable profit" (Reasonability determined by IRS) 3 years out of 5. (A special IRS rule for easily abused "businesses" that are normally considered hobbies.)

That would have led to zoning, licensing, inspection, state registration, and other issues that would have guaranteed no profits anyway.

As if the extra costs premium feeds; supplements; match & show fees & travel expenses; the additional vet care & testing that showing & breeding involves; stud fees & air shipping of bitches for breeding all entail, which puppy mills do not pay.

[brytlea]

Yeah, it's a conundrum.
susie

[Darnright]

>We HAD to declare any income from any sales; but were not allowed to take any expense deductions for our hobby, unless we could PROVE it was a business, AND made a "reasonable profit" (Reasonability determined by IRS) 3 years out of 5. (A special IRS rule for easily abused "businesses" that are normally considered hobbies.)<

There was a law we worked to defeat this year (in Virginia) that had a clause written in that exempted anyone who bred dogs "not for profit". The problem is, in another part of the law, taking money of any amount could be defined as breeding "for profit". Profit does not necessarily mean you make more than you spend, it seems.

Good, ethical breeders don't make more than they spend on their animals, if they're breeding judiciously, and health testing their animals. If you breed Toys, and have a C-section, your "profit" goes down the drain or into your Vet's pocket. Add a stud fee upwards of a thousand dollars, and you see why we call this a hobby, or a mental illness (chuckle).