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Making the best black baldy cattle
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<blockquote data-quote="Caustic Burno" data-source="post: 1418371" data-attributes="member: 694"><p>You better sharpen your pencil you maintained that cow 730 days with no return. That retained heifer is not an asset but a liability until she returns income to the operation that is another roughly 730 days. Using the low end of the scale at a dollar a day you have 1460 dollars in that heifer that has produced nothing. Realistically cost run closer to 1.50 a day so that puts you 2190 in the hole. If she falls over dead there is no tax advantage left in her as she came free by IRS rules, all you can write off is operating cost.</p><p>The better cow has depreciation value as well giving you a higher return on your invested income.</p><p>Secondly unless your a large operation that can raise a true F-1 using a terminal sire your are leaving money on the table and not running a better cow.</p></blockquote><p></p>
[QUOTE="Caustic Burno, post: 1418371, member: 694"] You better sharpen your pencil you maintained that cow 730 days with no return. That retained heifer is not an asset but a liability until she returns income to the operation that is another roughly 730 days. Using the low end of the scale at a dollar a day you have 1460 dollars in that heifer that has produced nothing. Realistically cost run closer to 1.50 a day so that puts you 2190 in the hole. If she falls over dead there is no tax advantage left in her as she came free by IRS rules, all you can write off is operating cost. The better cow has depreciation value as well giving you a higher return on your invested income. Secondly unless your a large operation that can raise a true F-1 using a terminal sire your are leaving money on the table and not running a better cow. [/QUOTE]
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