In 2016, Tyler decided he needed to be a healthier person. To help achieve that

Question

In 2016, Tyler decided he needed to be a healthier person. To help achieve that goal, he tried to grow all of his own vegetables organically. The vegetables did not grow well, and Tyler was able to harvest nothing from his garden. Which of the following is most accurate?

a) Tyler should definitely deduct the cost of his gardening as a business expense.

b) Tyler cannot deduct any of his expenses.

c) Tyler needs to set up a corporation for his food-growing, then it will qualify as a business.

d) Tyler can deduct half of his expenses because the crops did not grow well.

Explanation / Answer

The most accurate answer would be (b) which is "Tyler cannot deduct any expenses" , because Tyler is trying to grow organic vegetables for his own personal consumption and hence the intent doed not qualify his endeavour as a business. This is also the reason why option (c) is invalid as even if Tyler had set up a corporation to run his food-growing initiative, the primary intent of the same would have been to satisfy Tyler's personal consumption requirement.The food growing initiative would not have been targeted at selling the produce and trying to create profit out of the same. Hence, since it is not a business the gardeing operations cannot qualify for cost deductions.

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