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<blockquote data-quote="Running Arrow Bill" data-source="post: 385372" data-attributes="member: 9"><p>You are correct! Our CPA Firm would concur.</p><p></p><p>One's "basis" is the acquisition cost of the animal (NOT their care, feeding, vet, etc., expenses that are "expensed"). One cannot depreciate something that did not "cost" anything (aka "the basis"). </p><p></p><p>Just an example: Say one bought a heifer calf for $500. You spent another $1000 getting her to breeding age. When she was "breeding age", then you could "convert" her acquisition cost of $500 to <u>start</u> depreciating her as a breeding cow.</p><p></p><p>When it comes to tax matters, especially in the agricultural arena, I would not go with any tax person except a CPA (preferably one that was attuned to ag issues). Those "seasonal" tax people are just that...seasonal. Any number of them are "trained" in assisting individuals in filling out forms and other non-complicated tax matters. JMHO... ;-) </p><p></p><p>Even with our own small operation (average 40-50 head yearly), we end up with 40+ pages of detailed tax documentation and reports from our CPA firm...and, they will "professionally" represent you if you have an audit.</p></blockquote><p></p>
[QUOTE="Running Arrow Bill, post: 385372, member: 9"] You are correct! Our CPA Firm would concur. One's "basis" is the acquisition cost of the animal (NOT their care, feeding, vet, etc., expenses that are "expensed"). One cannot depreciate something that did not "cost" anything (aka "the basis"). Just an example: Say one bought a heifer calf for $500. You spent another $1000 getting her to breeding age. When she was "breeding age", then you could "convert" her acquisition cost of $500 to [u]start[/u] depreciating her as a breeding cow. When it comes to tax matters, especially in the agricultural arena, I would not go with any tax person except a CPA (preferably one that was attuned to ag issues). Those "seasonal" tax people are just that...seasonal. Any number of them are "trained" in assisting individuals in filling out forms and other non-complicated tax matters. JMHO... ;-) Even with our own small operation (average 40-50 head yearly), we end up with 40+ pages of detailed tax documentation and reports from our CPA firm...and, they will "professionally" represent you if you have an audit. [/QUOTE]
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