keep or sell

[runner]

Ive got some calves 400 lb on cows . Should i sell or hold over. Sell later when bigger.

 

[RanchMan90]

What gender and color are they?

 

[Rafter S]

How old are they? Are the cows in good shape, or are the calves pulling them down?

 

[runner]

Out of Hereford bull on black cows. Cows in good shape. There heifers and steers 5 months or so. I still have grass and plenty of hay.

 

[TennesseeTuxedo]

Out of Hereford bull on black cows. Cows in good shape. There heifers and steers 5 months or so. I still have grass and plenty of hay.

I'm holding ours.

 

[Rafter S]

Out of Hereford bull on black cows. Cows in good shape. There heifers and steers 5 months or so. I still have grass and plenty of hay.

I'd hold them another 90 days.

 

[RanchMan90]

Out of Hereford bull on black cows. Cows in good shape. There heifers and steers 5 months or so. I still have grass and plenty of hay.

The heifers should fetch $600 in private treaty sales today, steers should bring the same at auction today provided they are black and steered. You may make an extra couple hundred per head in spring or may not depending on market trends.

 

[1982vett]

I realize you are asking our crystal balls what the market is going to do.... so let me remind you of a tax management tool that doesn't involve spending. It is getting close to the end of the year. Which would do you more good? Income this year to pay bills or deferring said income into next year possibly reducing taxable income for this year.....managing self employment taxes is worth at least 15.3% of your profit.

Risks of deferring are the market continues down on top of added carring expenses, labor and the ever present risk of illness and death. Upside tax management is possibly a lower tax bracket for 2016 and if you are already profitable this year, a lower tax bill for self employment this year. Upside of holding over might be the market strengthens and you get paid for your extra efforts and risk you took on and have 12 months to manage your tax bill.

 

[RanchMan90]

I realize you are asking our crystal balls what the market is going to do.... so let me remind you of a tax management tool that doesn't involve spending. It is getting close to the end of the year. Which would do you more good? Income this year to pay bills or deferring said income into next year possibly reducing taxable income for this year.....managing self employment taxes is worth at least 15.3% of your profit.

Risks of deferring are the market continues down on top of added carring expenses, labor and the ever present risk of illness and death. Upside tax management is possibly a lower tax bracket for 2016 and if you are already profitable this year, a lower tax bill for self employment this year. Upside of holding over might be the market strengthens and you get paid for your extra efforts and risk you took on and have 12 months to manage your tax bill.

Good point on the taxes. It would also be hard to hedge them if they're not a full load to lock in prices.