Bright Raven
Well-known member
Caustic Burno":1lgh3783 said:What happened to taxes,fuel, maintenance etc.Wyo1":1lgh3783 said:If you can't make money retaining your heifers it must be your location.
Heifer last fall worth $570
Winter $40x7=280 (more than I pay)
Sumer $20x6=120 (more than I pay)
Breeding $30
Death loss interest $50
Vet/vaccine $10
Total $1060
So if you sold them next fall just as open heifers 975x1.25 1218
Breed heifers $1500
If you need a new accountant and don't depreciate your breeding livestock you would only be paying on the first 570 plus profit. And you would have to pay on the 570 in the first place.
What happened to the cows expense as well? The cow produced no income for the year only inputs.
You can't deprecate retained stock as the stock has no value until sold.
If your CPA is depreciating retained stock they are going to get you one of those special audits.
You can right off the inputs on the retained calf that's it.
To have depreciation value with the IRS it has to be bought
If I use your numbers for the cow and calf to retain you have 2100 in them
I prepare my taxes and that is my understanding. But it would not be my first tax mistake if I am doing it wrong.