If it makes enough money that you start to feel guilty, talk to a CPA about what you will need to do. Each state/country has different laws and here in Oklahoma, sales tax is complicated by the fact of where you sell the product. Health codes for packaging are different in different areas and product liability insurance is another problem all together. Income tax may be the easiest part of the whole thing. Basis in a hive is what you paid for the hive. I always expense the queens. Expense everything possible (sec 179 depreciation will let you deduct about everything in the year purchased, for small producers) One of the best sources of information would be to find the local beekeepers association and join. Many of the people you will meet will be able to hive you "first hand" knowledge. Richard Barnes, C.P.A. [log in to unmask] Duncan, OK, 73533 At 08:42 AM 5/6/98 EDT, you wrote: > I would much like to see some discussion of income taxes as related to >beekeeping-sometimes a hobby beekeeper breaks even or even makes a profit. > > Fair market value of a hive or other basis? > Do you depreciate queens or expense them? > > Sooner or later this hobby of mine is gonna break even and considering the >usuual tax policy of if it makes money it's a business and if it loses money >it's a hobby I want to star thinking ahead. > >Totally clueless as to beekeeping or agriculture and taxes. > >