calf loss and taxes

[denoginnizer]

If your cow losses her calf is that tax deductible?

 

[EIEIO]

According to my CPA, NO! You can just deduct if you lose the cow.

J

 

[Caustic Burno]

According to my CPA, NO! You can just deduct if you lose the cow.

J

Yours says no just like mine, I used the arguement that I shouldn't have to pay taxes on the live ones I sell then. That didn't fly with my CPA either.

 

[Crowderfarms]

According to my CPA, NO! You can just deduct if you lose the cow.

J

Yours says no just like mine, I used the arguement that I shouldn't have to pay taxes on the live ones I sell then. That didn't fly with my CPA either.

Our CPA says no as well. We had a discussion, down at the store the other day about cattle death losses as deductions.I was told by some of the fellers, that they've always been told by a CPA in town that if the loss occured from a single head that was born on the farm, they were deductible,and if it was a loss from a Cow bought at a sale barn, it was not deductible.Our CPA painted a whole different picture to me.

 

[jcummins]

if it was a loss from a Cow bought at a sale barn, it was not deductible.

I started a cattle operation in 2005 so haven't been through the tax process yet. I thought cows held longer than a year was depreciated?? So a cow partially depreciated dies...and you can't deduct the rest? Confused.

 

[Crowderfarms]

if it was a loss from a Cow bought at a sale barn, it was not deductible.

I started a cattle operation in 2005 so haven't been through the tax process yet. I thought cows held longer than a year was depreciated?? So a cow partially depreciated dies...and you can't deduct the rest? Confused.

So am I. I have deucted Cattle deaths for years, without a single question from the IRS.

 

[Nowland Farms]

I too lost a cow & calf a couple of years ago. The CPA showed a loss for both the cow & calf.

 

[mitchwi]

According to my CPA, NO! You can just deduct if you lose the cow.

J

Yours says no just like mine, I used the arguement that I shouldn't have to pay taxes on the live ones I sell then. That didn't fly with my CPA either.

Our CPA says no as well. We had a discussion, down at the store the other day about cattle death losses as deductions.I was told by some of the fellers, that they've always been told by a CPA in town that if the loss occured from a single head that was born on the farm, they were deductible,and if it was a loss from a Cow bought at a sale barn, it was not deductible.Our CPA painted a whole different picture to me.

somebody down at the store got things mixed around...

a raised cow or calf that dies there is no loss to take as you have expensed everything into raising it, that is where your loss occurs - no sale = no income.

if you purchase an animal, cow or calf and it dies, if it has not already been depreciated then you "write-off" the amount you paid for it in the year of death, if you have already begun depreciation on the cow, then you would "write-off" the remainder of that purchase price

 

[mitchwi]

I too lost a cow & calf a couple of years ago. The CPA showed a loss for both the cow & calf.

Without knowing the whole situation, it this instance let's say you bought a pair and lost both, $$ was allocated to each, therefore wrote them both off with the entire amount purchased...

 

[Caustic Burno]

According to my CPA, NO! You can just deduct if you lose the cow.

J

Yours says no just like mine, I used the arguement that I shouldn't have to pay taxes on the live ones I sell then. That didn't fly with my CPA either.

Our CPA says no as well. We had a discussion, down at the store the other day about cattle death losses as deductions.I was told by some of the fellers, that they've always been told by a CPA in town that if the loss occured from a single head that was born on the farm, they were deductible,and if it was a loss from a Cow bought at a sale barn, it was not deductible.Our CPA painted a whole different picture to me.

somebody down at the store got things mixed around...

a raised cow or calf that dies there is no loss to take as you have expensed everything into raising it, that is where your loss occurs - no sale = no income.

if you purchase an animal, cow or calf and it dies, if it has not already been depreciated then you "write-off" the amount you paid for it in the year of death, if you have already begun depreciation on the cow, then you would "write-off" the remainder of that purchase price

Bingo

 

[mhoback]

You cannot deduct losses on raised cattle that died because you have already deducted all of the costs of the animal (feed, vet, etc.) If a cow that you bought dies, you can deduct any remaining basis (undepreciated cost) in the year it dies.

 

[cherokeeruby']

Have a friend who told me that when she was a little girl her father had a small dairy. They would raise calves and also buy baby calves. For some mysterious reasons it was only the bought calves that died for tax purposes....

 

[jcummins]

Mitchwi...exactly the tax advise I have been given, and the direction I'm taking.

 

[Jeanne - Simme Valley]

a raised cow or calf that dies there is no loss to take as you have expensed everything into raising it, that is where your loss occurs - no sale = no income.

if you purchase an animal, cow or calf and it dies, if it has not already been depreciated then you "write-off" the amount you paid for it in the year of death, if you have already begun depreciation on the cow, then you would "write-off" the remainder of that purchase price

I agree with CB - right on.