xbred
Well-known member
"Gulf coast Cattleman" page27...in reference to the IRS and cattle expenses..."assume you buy a cow for $800, keep her for 10 years and then sell the animal for $600. The profit is $200, which is depreciateated over 10 years. Annual depreciation on this animal is $20. So every year, $20 is expensed against the calf crop for this cow's depreciation."
I thought I understood depreciation, but apparently not...how does selling an $800 animal for $600 equate to $200 profit?? I'll have to talk to my tax lady...I thought you depreciated the purchase price of the animal over a certain # of years, say $800 over 5 years =$160 per year depreciation per year...then the sell price was all profit (less expenses)...If someone could take all I don't know they could write a large book...
I thought I understood depreciation, but apparently not...how does selling an $800 animal for $600 equate to $200 profit?? I'll have to talk to my tax lady...I thought you depreciated the purchase price of the animal over a certain # of years, say $800 over 5 years =$160 per year depreciation per year...then the sell price was all profit (less expenses)...If someone could take all I don't know they could write a large book...