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Old 03-18-2011, 08:31 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, 08:36 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.

The email addy is ttbquestions@ttb.gov


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Old 03-18-2011, 08:59 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, 10:04 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, 10:20 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, 10:23 PM   #6
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But I love idle speculation!!
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Old 03-18-2011, 10:57 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, 08:45 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, 09:30 PM   #9
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Maybe you could offer the IRS Auditor a Homebrew???? LOL
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Old 04-02-2012, 09:38 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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