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if you lose cow and calf, how to figure loss value for taxes

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kaykay

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if you had a cow for a year and she and the calf died from delivery complications, how do you figure the value of cow and calf to turn in on taxes??
 
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kaykay

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why?? she was an investment, why not be able to take the loss?? what about the calf???
 

txshowmom

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Can't claim the calf either. You can claim them as a deduction when you buy them but you can't claim them as a loss when they die because that would be claiming them twice. If you could claim everyone that died then you would have to laim everyone that lived as income. Do you report calves that you keep? No. Thats why.
 

jt

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kaykay":177kkbrt said:
if you had a cow for a year and she and the calf died from delivery complications, how do you figure the value of cow and calf to turn in on taxes??

the amount you can use on your taxes is your basis in the cow.. the amount you gave for her less any depreciation you may have taken. nothing for the calf. BUT..

check with your cpa.

jt
 
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kaykay

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I was thinking our CPA said he was depreciating the cows, we just bought her in november of last year....so maybe I will get to take something for her and I did turn her in and the price we paid for her. It just looks like the calf and the yr of growth in the cow would have been worth something, esp at todays cattle prices. I know CPA asked me if they were breeding stock.
 

jt

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kaykay":1d2ui16y said:
It just looks like the calf and the yr of growth in the cow would have been worth something, esp at todays cattle prices. I know CPA asked me if they were breeding stock.

yep, they might have been, but you are constantly writing off your expenses to raise them. all that is already in the expenses. only thing left, maybe, is any basis you may have in the cow. by him asking about them being breeding stock, if you told him yes, then i bet he is depreciating her, and may have completely written her off on last years taxes and therefore nothing is left for this year.

excluding every day expenses, all you can write off is your basis, if any.
BUT, dont take my word for it..
your cpa can probably explain it better to you.

jt
 

Running Arrow Bill

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We use a CPA firm...money well spent.

Any cattle we purchase, including cost to get them to our place is our "basis" cost. All of our purchased breeding stock is depreciated. Calves born from our breeding stock have "no cost" (taxwise) and anything we sell them for is treated as "gain" (income). On the other side of the coin, ALL feed, care, maintenance costs for ALL of our cattle is yearly deductible as an "expense" item.

Capital livestock purchases and infrastructure improvements and additions, as well as major equipment and vehicles are depreciable items. Other "consumables" and maintenance items, insurance, advertising, etc., are treated as "expense" items.

If you're not 100% sure of what you are doing, taxwise, consult with your CPA, preferably a firm that has more than one there just in case he/she died unexpectedly or skipped and left you up a creek without a paddle...lol.
 
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kaykay

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Our CPA did depreciate the cattle we bought last year, on this particular one, she was bought with 4 more and he only took $148 depreciation for the 5 . I will tell him about this one dying and see if it makes any difference. We also bought a new tractor, stock trailer and other things that he depreciated. We are both self employed so he didnt take the full depreciation so we could get credit for the IRA's we had took out, he did explain that to me. Also he is in partnership with a couple other CPA's so that someone could pick up if something were to happen to him.
Running Arrow Bill and JT you have both been very helpful. its nice when someone really trys to be helpful. We just started with cattle last June so I have alot to learn!!! :roll:
 
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kaykay

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oops!!!!! Txshowmom, you did help too!!!! Sorry about that and I DO appreciate your time involved . I was so wrapped up in all the info that JT and Running Arrow Bill were giving that I forgot all about you....no harm intended. Thank you, thank you, thank you!!!!! I really mean it too!!!! :oops:
 

txshowmom

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Well....you know...I do what I can. I am just kidding I wasn't hurt. I hope everything works out for you all.
 
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kaykay

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Txshowmom, you were the FIRST to respond too.....I liked that ......QUICK response!!! No waiting for hours for an answer. Thanks again.
 

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