linebacker
Member
If you guy had to give the gov 40% of your income and you could save that money by spending it on agriculture related items such as feed and such, would you feed thru this drought or sale?
hypothetical Question
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KenB
Well-known member
linebacker":10hqkdoq said:
;-) Will the other 60% that you will be spending make you any money?
Farminlund
Well-known member
I'm looking to buy hay now.
I feel that genetic quality obtained over years of breeding is worth a year of feed as an investment in the future of my cattle operation. Others disagree & feel that deep culling is the correct approach, saving the forage base from overgrazing & keeping the bottom line from getting too red. I content it takes too long to re-establish the genetics lost in really deep culling - just one farmer's approach that may not be the correct one for you but makes sense to me.
I feel that genetic quality obtained over years of breeding is worth a year of feed as an investment in the future of my cattle operation. Others disagree & feel that deep culling is the correct approach, saving the forage base from overgrazing & keeping the bottom line from getting too red. I content it takes too long to re-establish the genetics lost in really deep culling - just one farmer's approach that may not be the correct one for you but makes sense to me.
linebacker
Member
if you make 100,000 and you were taxed at 40% (for a job unrelated to ranching) would you spend more on feed knowing you could deduct it off of your taxes at the end of the year.
sidney411
Well-known member
Well, you'd have to buy an awful lot of feed to offset $40,000 since it's not a $ per $ tax write off. I'd have to buy more cows to eat it.
I don't think I would buy any more feed then I would normally buy in the given situation. There's always other things to buy other then feed to claim on taxes.
I don't think I would buy any more feed then I would normally buy in the given situation. There's always other things to buy other then feed to claim on taxes.
kb5iod
Well-known member
My wife is a CPA and some people get so intent on reducing their tax liability that they lose sight of the big picture and hurt themselves overall. Don't spend $10 to save $5. Example: Some people buy depreciable assets that they don't need only to sell them a few years later for pennies on the dollar. What if you pay the tax and invest the remainder of that money that you would have spent on that new pick-up(hypothetical purchase)? How will this effect your overall financial position in the long run? The fact that you can deduct the feed is only one component of the decision. How much will it benefit/hurt(profit) you overall to buy the feed?
