Retirement........

Originally Posted by wade

Rich, my understanding is that if you sell babies that would be considered ordinary income. When you sell your adult breeders however, that is considered capital gains and you don’t have to pay any FICA on that money, just income tax. If you have depreciated out all your equipment you don’t have to claim the income from the sell of the equipment unless you sell it for more than you paid for it.

Well the question is going to be about that equipment that I 179 expensed that is not being sold with the business. I'm certainly not selling all my computer equipment, camera and video stuff, air conditioning units for the buildings, the vehicles, etc., etc., that are classed as SerpenCo business assets, among other things. I'm guessing I can just transfer most of them to FaunaClassifieds, but not sure about the ones that really aren't applicable to a completely online based business like FC is.

Are you incorperated? The inc could sell them to you.

Originally Posted by wade

Are you incorperated? The inc could sell them to you.

Nope. Sole proprietorship. I never really saw the need for incorporation or even a LLC. I wanted to keep it simple. FaunaClassifieds is a LLC, however.

Good luck and have fun in retirement!

Do you have a buisness license for Serpenco? Not sure that matters, but my thoughts are that the sale of the adults would also be considered (buisness stock) and would require that you claim that as income. If Serpenco has been maintained as a "hobby" only, then you may not have to claim it, but I am betting you do.

Guess you need to start coming up with tons of write offs. You can legally depreciate your breeders like recreational and motor vehicles. Every little bit counts huh?

Originally Posted by Camby

Do you have a buisness license for Serpenco? Not sure that matters, but my thoughts are that the sale of the adults would also be considered (buisness stock) and would require that you claim that as income. If Serpenco has been maintained as a "hobby" only, then you may not have to claim it, but I am betting you do.

Guess you need to start coming up with tons of write offs. You can legally depreciate your breeders like recreational and motor vehicles. Every little bit counts huh?

I run this like a bonafide business and pay the taxes as needed. Oddly enough when I moved here to Florida and talked to the people in charge of licensing, they determined that since we are on agriculturally zoned land and were breeding animals for sale, we are technically classed as being a "farm" instead of an actual "business". But I still do the tax forms as a business...

Actually I believe you cannot depreciate APPRECIATING assets, which is what the breeding stock actually is. Now if you bought them as adults, then perhaps you could, but raising them up from babies, already deducting all the expenses associated with raising them, then you really don't have anything to depreciate in them. They are INCREASING in value as they get older, up to a point.

The problem with trying to come up with writeoffs is that this normally means spending money for some sort of investment or business asset for that writeoff. I would really like to set as much money as possible aside for retirement. That is a BIG unknown for us. Who the heck knows how long we will live? So how do you work out an accurate budget over a period of time that is unknowable? So we will just have to make a guess. If we outlive our estimate, then I don't know what the heck would come next. If we fall short of the estimate, well we just leave money on the table for the beneficiaries in our will. Probably a little bit miffed that we might have been able to do a bit more each year with some extra money, though...

Kind of disconcerting how many decisions there are to make in life that are unknowable until looking back in hindsight, when it is too late to do anything about it.

Best of Luck.. I'm a little bit behind. I know for sure you have the best butter stripes I've seen and will make sure I pick one up from you this year!

A couple of more emails from friends telling me that my retirement is an "end of an era" and I'm going to have to move into the Smithsonian Institute or something.........

But thank you for the well wishes, everyone....

Originally Posted by Rich Z

A couple of more emails from friends telling me that my retirement is an "end of an era" and I'm going to have to move into the Smithsonian Institute or something.........

But thank you for the well wishes, everyone....

I don't think you know how many lives you've impacted...
so, yeah, this is huge....

Originally Posted by Rich Z

Well, my ultimate game plan is that if in later years I find that we can't make it in retirement, to break some law to get us thrown in jail so the government can take care of us for free.


Certainly there MUST be a speed high enough that when arrested for it, it's an automatic jail sentence....

At least at the Smithsonian has a no touching policy.