Livestock sale due to drought - POSTPONE GAIN - WHERE to report on tax return

[numberkruncher]

I've researched postponing gain from livestock sales due to drought. I've calculated the unusual sales and completed the IRC Section 451(e) election.
I "sold" the breeding cows out of the software depreciation list and it all shows up as 1245 gain and properly shows herd animals removed from depreciation schedule.
I included the gain from the calves sold on the Schedule F. Now I feel like a dolt.

What LINE on what FORM removes the postponed gain from this year's taxable income???

I expected a line on the 4797 Sale of Assets or 4684 Casualty and Theft Losses, but I can't find a line on either form for postponing gain.

Your advice is appreciated...and I'll understand if you laugh hilariously. If you know, please give me specifics so I can finish this return!!!

Thank you so much,
NK

[Jiggers]

If the sale of the cows is all 1245 recapture, it carries from part III of the 4797 to part II of the 4797 (front page at the bottom).

I force a line on the 4797 to go to part II.: Drought Election and then the amount as the cost.

It should print on the 4797 part II as a negative amount.

If you defer the sale of calves due to the drought, you just take a deduction in Other Expenses on the Schedule F for the amount deferred: Drought Election and then the amount.

You do need to attach a statement making those elections to the tax return.

[oceanlovin'ea]

No one is laughing

I don't have an answer for you. That is not something I have ever dealt with. But let me assure you that no one is laughing at your question. I personally have asked some pretty "dumb" questions on this board. The people who post are quite kind in their responses. Especially if you are working in your office alone, sometimes you just need someone to bounce thoughts off. This board really helps.

I hope someone can answer your question.


Linda, EA

[numberkruncher]

Thank you very, very much. I can finish this return at last.

I am SO grateful to have your support and advice.

NK