Dog breeding

[MARLA EDWARDS]

I know that since there isn't an exact description of dog breeding, I will have to enter it as a 7 year recovery.
The breeder tells me that she won't breed them past 5 years though. Has anyone come up against this?
thank you

[Roland Slugg]

Well, breeding and dairy cattle are specifically mentioned in the 5-year MACRS class, and horses are in the 3-year or 7-year class depending on their age and purpose. Breed dogs aren't specifically mentioned, so you should probably use the default/catch-all 7-year class for property that doesn't have a class life and isn't specifically assigned to any other MACRS class. (Code §168(e)(3)(C)(v))

[Burke]

Watch for continued losses in this type of business, especially if it is not the sole source of income. It's one of the areas IRS really targets.