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<blockquote data-quote="Arnold Ziffle" data-source="post: 325682" data-attributes="member: 43"><p>wideurt, I'm confident that CB was initally referring to a question posed by "apusmnt", concerning whether or not some sort of tax deduction was avilable in the case of the death of a <u>raised</u> cow; and CB correctly concluded that there is no such tax deduction available -- that to allow a deduction for the pre-death value of the animal (or of the cummulative costs of raising it) would in fact be "double dipping" since in fact every single dollar of out of pocket cost previously incurred in raising the cow had already been deducted for tax purposes. Many people incorrectly think that since they have an "economic loss" they are entitled to take a tax deduction upon the death of a <u>raised</u> animal -- not so! Another example of a frequent mistake is in the case of death of a <u>purchased</u> animal for which the owner has already written off the cost of the animal via depreciation deductions. Once again, there is no tax deduction available upon the death, since the entire cost (at least in my example) has already been deducted in prior years as depreciation expense.</p><p></p><p>Based on what you indicated in your earlier posts, you can at least take some comfort in knowing that you will be able to begin depreciating your heifers for tax purposes in 2007 -- and if you meet the "earned income" limitations of Section 179 your tax lady will probably be able to essentially deduct the full cost of the heifers in 2007 (as depreciation expense) if you so desire</p></blockquote><p></p>
[QUOTE="Arnold Ziffle, post: 325682, member: 43"] wideurt, I'm confident that CB was initally referring to a question posed by "apusmnt", concerning whether or not some sort of tax deduction was avilable in the case of the death of a [u]raised[/u] cow; and CB correctly concluded that there is no such tax deduction available -- that to allow a deduction for the pre-death value of the animal (or of the cummulative costs of raising it) would in fact be "double dipping" since in fact every single dollar of out of pocket cost previously incurred in raising the cow had already been deducted for tax purposes. Many people incorrectly think that since they have an "economic loss" they are entitled to take a tax deduction upon the death of a [u]raised[/u] animal -- not so! Another example of a frequent mistake is in the case of death of a [u]purchased[/u] animal for which the owner has already written off the cost of the animal via depreciation deductions. Once again, there is no tax deduction available upon the death, since the entire cost (at least in my example) has already been deducted in prior years as depreciation expense. Based on what you indicated in your earlier posts, you can at least take some comfort in knowing that you will be able to begin depreciating your heifers for tax purposes in 2007 -- and if you meet the "earned income" limitations of Section 179 your tax lady will probably be able to essentially deduct the full cost of the heifers in 2007 (as depreciation expense) if you so desire [/QUOTE]
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