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To keep heifers back or not?
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<blockquote data-quote="Massey135" data-source="post: 912559" data-attributes="member: 17234"><p>The problem with this is that you will have to pay income taxes on both sides and will only be able to deduct one years depreciation against that the following year. Unless of course you expensed the entire asset in yr 1 which would eliminate the whole point of the "sale" - to be able to depreciate the asset on a schedule. </p><p></p><p>This past year, because of the drought, the IRS allowed cattle income from cattle that were sold DUE TO DROUGHT ( figured by the number over and above what you usually sell) is to be tax free as long as the money was reinvested in livestock. Otherwise you would have to pay income taxes on the gross income and then re purchase with the remaineder- which that value can then be depreciated over the animals useful life.</p></blockquote><p></p>
[QUOTE="Massey135, post: 912559, member: 17234"] The problem with this is that you will have to pay income taxes on both sides and will only be able to deduct one years depreciation against that the following year. Unless of course you expensed the entire asset in yr 1 which would eliminate the whole point of the "sale" - to be able to depreciate the asset on a schedule. This past year, because of the drought, the IRS allowed cattle income from cattle that were sold DUE TO DROUGHT ( figured by the number over and above what you usually sell) is to be tax free as long as the money was reinvested in livestock. Otherwise you would have to pay income taxes on the gross income and then re purchase with the remaineder- which that value can then be depreciated over the animals useful life. [/QUOTE]
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To keep heifers back or not?
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