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Home Brew Forums > Home Brewing Beer > General Beer Discussion > Home Brewing and Tax Deductions?
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Old 03-18-2011, 09:31 PM   #1
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Default Home Brewing and Tax Deductions?

Hey there,
I know this might sound crazy but hear me out...As far as I can tell in CA it is legal for a homebrewer to supply beer at a non-profit organizition's charity event (beer festival). The beer would obviously be donated and I can not receive any sort of compensation. Now obviously I can't claim the beer as a tax deduction since I don't possess a license to make beer. Could I claim the supplies (hops, grain, yeast) as an "in kind" donation to a charity? I think it could compare to providing food to a charity event like a chile cook off. I would think you would/should be able to write off the cost of ingredients as a donation. Any CPA's out there? What do you think? Thanks. Al

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Old 03-18-2011, 09:36 PM   #2
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You don't need a cpa, you need to contact the TTB directly.

Anything else is going to be idle speculation. More than likely nothing is deductable, because that would be a medium of exchange, I'm pretty sure it's irrevelant whether you are getting compensated for the beer, or the ingredients used to make beer. I don't think in their eyes there is a distinction.

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Old 03-18-2011, 09:59 PM   #3
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Pursuant to § 5053(e) any adult may, without payment of tax, produce beer for personal or family use and not for sale.

Technically you were not selling the beer, And everyone at a Beer Festival is your Brother!
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Old 03-18-2011, 11:04 PM   #4
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Seems to me that if you can't sell it legally, then its fair market value is $0. But, as Revvy said, this is idle speculation. And, as with all legal matters, you should definitely contact the relevant authorities directly.

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Old 03-18-2011, 11:20 PM   #5
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Pure speculation but I bet its not allowed as a deduction because that makes it too 'easy' to loophole the whole taxation of alcohol, etc...

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Old 03-18-2011, 11:23 PM   #6
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But I love idle speculation!!

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Old 03-18-2011, 11:57 PM   #7
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It would seem that if I bought something and then donated it to a charitable organization it would qualify as a deduction. Remember I am NOT claiming beer but rather grain,hops, yeast. I could equate it to chili...I don't have the proper license to sell chili. If I made a huge batch of chili for a non profit I would think I would be able to deduct the beef, beans, and whatever else went into the chili. It was money that I spent on products that went to a charity. I know I am probably higher than Charlie Sheen on this one.....

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Old 04-02-2012, 09:45 PM   #8
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Sorry for bringing back an old thread but I am doing my taxes. I poured my homebrew at a charity event last year. You can read about it here...http://www.homebrewtalk.com/f14/pinn...rience-269499/
Anyways I used the event to sell brewery t-shirts and did very, very well. It would seem that since I conducted business(sold t-shirts) that some parts of my booth would be legally eligible for tax deductions.

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Old 04-02-2012, 10:30 PM   #9
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Maybe you could offer the IRS Auditor a Homebrew???? LOL

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Old 04-02-2012, 10:38 PM   #10
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Quote:
Originally Posted by Phunhog View Post
Sorry for bringing back an old thread but I am doing my taxes. I poured my homebrew at a charity event last year. You can read about it here...http://www.homebrewtalk.com/f14/pinn...rience-269499/
Anyways I used the event to sell brewery t-shirts and did very, very well. It would seem that since I conducted business(sold t-shirts) that some parts of my booth would be legally eligible for tax deductions.
Are you reporting the t-shirt income on your return? If so, then any expense related to the sales would be deductible.
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