Salvage value on breeding stock

[ROB]

I posted a question to my State Representative regarding salvage values for replacement heifers in our cow herd. He agreed with the fact that a salvage value should be available for retained (in-herd) replacement heifers - as is the case with replacement heifers purchased. In his reply letter he stated that he would bring it to the floor in their congressional mtgs. - but to date nothing has transpired. Any thoughts on this?

ROB

 

[mitchwi]

Now why would you want to do that?

 

[ROB]

I take any tax breaks I can get!

ROB

 

[J]

LISTEN................................ :shock:




























I think I hear CB a comin' :compute:

 

[backhoeboogie]

="J"

I think I hear CB a comin' :compute:

My tongue is getting a hole in it! I wish CB would hurry up so I could quit biting.

 

[dun]

If MO would do it, then the next challenge would be to get the feds to do it. Don;t see either happening in my lifetime.

dun

 

[MikeC]

I posted a question to my State Representative regarding salvage values for replacement heifers in our cow herd. He agreed with the fact that a salvage value should be available for retained (in-herd) replacement heifers - as is the case with replacement heifers purchased. In his reply letter he stated that he would bring it to the floor in their congressional mtgs. - but to date nothing has transpired. Any thoughts on this?

ROB

Not sure I fully understand what you are saying.

You are getting a tax break for the price of the replacements through decpreciation now, aren't you?

 

[ROB]

Sounds like this might get fun???

I have depreciation schedules set up on breeding stock purchased ... not on breeding stock raised (retained).

ROB

 

[john250]

IRS will say that you deducted the cost of raising those heifers, i.e. feed, shelter, vet, etc. Therefore you aren't eligible to depreciate them.
That's how I understand the IRS position.
You can argue that you "purchased" them at the date where you sold steers and didn't sell heifers. Good luck. :lol:

 

[BC]

IRS will say that you deducted the cost of raising those heifers, i.e. feed, shelter, vet, etc. Therefore you aren't eligible to depreciate them.
That's how I understand the IRS position.

My tax man says the same thing. If you want to establish a value that you can depreciate, then take your heifers to the sale and buy them back. You are out the commission, BUT you have written documentation on what they cost for depreciation purposes.

 

[MikeC]

Correct. I must have read it wrong the first time. I thought you were buying these replacements.


Boughten cattle can be depreciated but not raised cattle.

But you are deducting the expenses of raising them aren't you?

 

[Caustic Burno]

I posted a question to my State Representative regarding salvage values for replacement heifers in our cow herd. He agreed with the fact that a salvage value should be available for retained (in-herd) replacement heifers - as is the case with replacement heifers purchased. In his reply letter he stated that he would bring it to the floor in their congressional mtgs. - but to date nothing has transpired. Any thoughts on this?

ROB

You can do this today take to the sale barn and buy your own cow and see how it works out. Lets see you sell the heifer for 800 bucks and you claim that on your profit statement, now you buy her back at 800 bucks and claim that in the loss, cow has no value. You want your cake and it it to, this is a business like any other.

 

[mitchwi]

I would rather take the expenses for raising that heifer in the year/years it cost to raise her.... rather than backing out the expenses that is cost to raise her, and then be able to take the expense as depreciation in years starting with the 1st year she had a calf.....

 

[Running Arrow Bill]

I posted a question to my State Representative regarding salvage values for replacement heifers in our cow herd. He agreed with the fact that a salvage value should be available for retained (in-herd) replacement heifers - as is the case with replacement heifers purchased. In his reply letter he stated that he would bring it to the floor in their congressional mtgs. - but to date nothing has transpired. Any thoughts on this?

ROB

"State Representative"?? Not a political issue... ok?

Contact a qualified CPA who has experience with agricultural tax matters. Or, a Tax Attorney if you are unsure of where you stand.

 

[TheBullLady]

Glad you mentioned that Running Arrow.. I was trying to figure out why a State Respresentative would be involved also!?

This is a tax issue.. not a government policy issue.

 

[dun]

Glad you mentioned that Running Arrow.. I was trying to figure out why a State Respresentative would be involved also!?

This is a tax issue.. not a government policy issue.

I think he's hoping that he can change the state tax laws

dun