Pet Exemption-Tools of the Trade?
I am self-filing. I am using the Bridgeport? website, I'm not real impressed. I am just about done with the creditors, income and expenses(still working that one out). I got in financial trouble when I graduated from college in Aug 2001, with very little debt, then 9/11 happened, and jobs dried up. I was unemployed/self-employed for 18 months. I was holding my own with the huge debt I accumulated until this spring when I was diagnosed with MS and was off work for 3 months. The future is now a bit uncertain, and I have ~$25k credit/medical and ~$120k student loans (BS Bio, & MS Chemistry).
My question is on our animals. My daughter and I have quite a few animals. We began breeding pedigreed cats about 1.5 years ago. I keep track of income and expenses, and I claim all of it on my tax return as self employment income(or loss..lol) Is it to far a stretch to claim them as tools of the trade? I was thinking of it like someone who works a day job, then does a say handyman side job at night or weekends and needs thier tools. If I were to sell them all today (and in a hurry) I could guess I'd get $1800 for them all, which is below the exemption limit for tools of the trade in Missouri. Will it raise major alarms? Should I use the wildcard instead? (I was hoping to save it for income taxes). Not sure what I should do here.
If my health deteriorates in the next few years, my disability ins. would not be enough to live on, and I would have them to supplement.
Thanks so much...I have really learned alot from reading other posts on here, its to bad the websites that you pay the $$$ to file don't have all this info available...
Laura
My question is on our animals. My daughter and I have quite a few animals. We began breeding pedigreed cats about 1.5 years ago. I keep track of income and expenses, and I claim all of it on my tax return as self employment income(or loss..lol) Is it to far a stretch to claim them as tools of the trade? I was thinking of it like someone who works a day job, then does a say handyman side job at night or weekends and needs thier tools. If I were to sell them all today (and in a hurry) I could guess I'd get $1800 for them all, which is below the exemption limit for tools of the trade in Missouri. Will it raise major alarms? Should I use the wildcard instead? (I was hoping to save it for income taxes). Not sure what I should do here.
If my health deteriorates in the next few years, my disability ins. would not be enough to live on, and I would have them to supplement.
Thanks so much...I have really learned alot from reading other posts on here, its to bad the websites that you pay the $$$ to file don't have all this info available...
Laura
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