Forced sell income taxes.

[hurleyjd]

I was thinking that in the drought situation where you have to sell off the herd you had two years to buy back. Is this fact or fiction. My accountant did no know. Might need a new accountant. I thought some of you might have faced this and could give me the answer.

 

[JSCATTLE]

Im not sure about livestock but I know when building houses u can live in it for two years and sell it . Roll the profit into a new house with out paying taxes on the profit in Texas .

 

[Jogeephus]

Look into Involuntary Conversion in capital gains tax code. Not sure about cattle but I've used this on other things.

 

[TexasBred]

Im not sure about livestock but I know when building houses u can live in it for two years and sell it . Roll the profit into a new house with out paying taxes on the profit in Texas .

New house has to be of "equal of greater value" unless it's been changed.

 

[JSCATTLE]

Im not sure about livestock but I know when building houses u can live in it for two years and sell it . Roll the profit into a new house with out paying taxes on the profit in Texas .

New house has to be of "equal of greater value" unless it's been changed.

this is true. I've built 3 and sold them . Now the soon to be ex gets the last one because its paid for . Bout my luck lol .

 

[TexasBred]

Im not sure about livestock but I know when building houses u can live in it for two years and sell it . Roll the profit into a new house with out paying taxes on the profit in Texas .

New house has to be of "equal of greater value" unless it's been changed.

this is true. I've built 3 and sold them . Now the soon to be ex gets the last one because its paid for . Bout my luck lol .

JS...according to this link there have been some changes since I lasst checked into this ages ago. Now it just has to be your primary residence.

http://www.bankrate.com/finance/real-es ... ers-1.aspx

 

[1982vett]

I was thinking that in the drought situation where you have to sell off the herd you had two years to buy back. Is this fact or fiction. My accountant did no know. Might need a new accountant. I thought some of you might have faced this and could give me the answer.

Sounds like part of what I heard....BUT...you still have to pay taxes on the income...You just have an "asterisk" on an amount to spend in the next year to buy back in and fully expense... You won't have to depreciate if you have no profits to expense against....

 

[agmantoo]

Following the drought of 07/08 here in NC we had the following guidelines
http://www.uwyo.edu/uwlivestockspt/Pubs ... tegies.pdf

 

[JSCATTLE]

JS...according to this link there have been some changes since I lasst checked into this ages ago. Now it just has to be your primary residence.

http://www.bankrate.com/finance/real-es ... ers-1.aspx[/quote]
good to know thanks

 

[Caustic Burno]

I checked with my CPA about this last week and she has been doing this a long time. According to her there is no way to carry it over. I was asking as I had sold down and was thinking of selling out until things improved.

 

[Calman]

this is true. I've built 3 and sold them . Now the soon to be ex gets the last one because its paid for . Bout my luck lol .[/quote]

Jscattle I had an ex that was good at house keeping also. :lol: :lol:

Cal

 

[JSCATTLE]

this is true. I've built 3 and sold them . Now the soon to be ex gets the last one because its paid for . Bout my luck lol .

Jscattle I had an ex that was good at house keeping also. :lol: :lol:

Cal[/quote]
Yea mine kept it all right . Ha ha

 

[kjonesel]

I've always thought it awful that you have to consider taxes when making management decisions. But I will tell you something that my Mom's cousing said at a Farm Bureau when I was 14. He went on to become the president of the state association of CPA's and just retired. He opened with the following quote to a group of tax hating farmers in 1974.
"I wish I could pay a million dollars a year in taxes, (long pause) Because with what I know I would have made a hell of a lot of money."
What he taught was don't be stupid and foolishly avoid taxes but know the statutes or invest in a competant accountant.