Taxpayer has a small farm and raises cattle. He usually purchases calves but will sometime breed to increase the size of the herd. Typical herd is maybe eight to ten cattle. Every year the taxpayer sells two to four and will butcher the same for food. It seems that the expenses (feed, vet, supplies, auto mileage, etc.) and the cost of the livestock should be allocated between what was sold and what was butchered. This would eliminate the farmer from taking a tax deduction for raising him own food but would also allow him to take a tax deduction for the livestock that was sold. Any thoughts, comments, advice, etc. Thanks!
Comment