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Taxes on stocker cattle

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RanchMan90

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Just found out that taxes on cattle bought and sold in the same year will be 29%. 15% being federal self employment tax, 4% state tax, + 10% capital gains tax, ow. Any ways to offset this other than spending profits on improvements? What am I missing?
 

Aaron

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Welcome to my world. Pretty much spend every penny I gross to avoid tax. Technically make zero profit, but no need for a profit when pretty much everything I ever will want in this world can be written off, either entirely or partially, as an expense. Generally, if 'it' can't be written off to some extent, I don't buy it. At the end of the day, I can look around and see the fruits of my labor and not some dollar figure on a tax form in April. If I had a 2nd job, the tax man would fleece me for sure.
 

Cross-7

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RanchMan90":3rv4c9ah said:
Just found out that taxes on cattle bought and sold in the same year will be 29%. 15% being federal self employment tax, 4% state tax, + 10% capital gains tax, ow. Any ways to offset this other than spending profits on improvements? What am I missing?

Calendar year or actual year ?
 

Stocker Steve

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RanchMan90":3cfs0el4 said:
What am I missing?
Profits can be a burden with stockering. :nod: Hire your kids if possible. Otherwise, you should check with a tax accountant on accelerated depreciation of useful things that hold value.
 

js1234

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Cross-7":34g0o9i8 said:
RanchMan90":34g0o9i8 said:
Just found out that taxes on cattle bought and sold in the same year will be 29%. 15% being federal self employment tax, 4% state tax, + 10% capital gains tax, ow. Any ways to offset this other than spending profits on improvements? What am I missing?

Calendar year or actual year ?
Calendar year.
 

Cross-7

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js1234":1uyyb9fw said:
Cross-7":1uyyb9fw said:
RanchMan90":1uyyb9fw said:
Just found out that taxes on cattle bought and sold in the same year will be 29%. 15% being federal self employment tax, 4% state tax, + 10% capital gains tax, ow. Any ways to offset this other than spending profits on improvements? What am I missing?

Calendar year or actual year ?
Calendar year.

It's a sad state to have to plan your living around bureaucracy.
( excessively complicated administrative procedure)
A simple buy/sell pay taxes on your profit is too is too simple I guess
 

Bigfoot

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I don't know how many stockers you run in a year, or how many pairs you have (not asking either), but if you have very many it would be worth paying your accountant to project your taxes in late October, or early November. Then you can make an informed decision before December 31st. I am never a proponent of buying equipment to save on taxes. I suspicion most people have no idea what they are doing, they just want something new, and it sounds like a plausible excuse. I do know that there is a difference in market animals,animals kept for breeding, and animals purchased for breeding. He tells me where I stand, and then I follow his advice.
 

Brute 23

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Bigfoot":ojq2n3iq said:
I don't know how many stockers you run in a year, or how many pairs you have (not asking either), but if you have very many it would be worth paying your accountant to project your taxes in late October, or early November. Then you can make an informed decision before December 31st. I am never a proponent of buying equipment to save on taxes. I suspicion most people have no idea what they are doing, they just want something new, and it sounds like a plausible excuse. I do know that there is a difference in market animals,animals kept for breeding, and animals purchased for breeding. He tells me where I stand, and then I follow his advice.

Ya, spending $100 to save paying the govt $29 doesn't make a lot of sense.
 

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