any accountants on here?

[milkmaid]

I'm trying to plan ahead...don't want to be stuck at the last minute next spring wondering about my taxes. I have a 4H steer that will be sold at the 4H market sale this fall. No one at the 4H offices around here is able to tell me if this animal is tax-deductible for ME. They're pretty sure the animal is tax-deductible for whoever buys it, but not sure about for the seller.

Most 4H kids here are around 10-14 years old and don't have to even think about taxes, and I think this was the first time the 4H offices here had even been asked that question. LOL.

Any one here know one way or the other?

Thanks!

 

[MikeC]

I'm trying to plan ahead...don't want to be stuck at the last minute next spring wondering about my taxes. I have a 4H steer that will be sold at the 4H market sale this fall. No one at the 4H offices around here is able to tell me if this animal is tax-deductible for ME. They're pretty sure the animal is tax-deductible for whoever buys it, but not sure about for the seller.

Most 4H kids here are around 10-14 years old and don't have to even think about taxes, and I think this was the first time the 4H offices here had even been asked that question. LOL.

Any one here know one way or the other?

Thanks!

If you are running a "For Profit" business and sincerely making an effort to profit, you will be able to deduct the expenses of raising the calf. If it is a "bought" calf, you have established a "basis" and if you depreciated that basis the net above expenses will be taxable.
Of course you will have to fill out the proper "forms" at tax time.
Probably just pocketing the money would be best unless you have expenses and or loan to pay off.

 

[jkwilson]

You pay taxes on your income, minus your expenses. You can deduct the original cost of the animal, feed, mineral, vet bills, medications, vehicle mileage directly related to his raising, expenses of the sale...If it's the only animal you have, it's usually easier to go with treating it as a hobby unless your AGI is high enough to wipe out too much of your expenses.

 

[Arnold Ziffle]

Claire -- check your PM.

 

[milkmaid]

Thanks folks!