Farm animals

[DTS]

When an animal dies three days after birth, what is the treatment on the return? I'm trying to find the value of the baby.

From what little info I can gather and understand, I may need to get you the intent of the livestock?? There was no breeding cost, as this was included in the purchase of the mother. When this is the case, is there any way to assign value to the offspring?

Any guidance would be greatly appreciated!

Thank you,

Dennis

[Jiggers]

Farm animals

When an animal dies three days after birth, what is the treatment on the return? I'm trying to find the value of the baby.

From what little info I can gather and understand, I may need to get you the intent of the livestock?? There was no breeding cost, as this was included in the purchase of the mother. When this is the case, is there any way to assign value to the offspring?

Any guidance would be greatly appreciated!

Thank you,

Dennis

Cash basis taxpayer gets no tax deduction for the death of any raised animal. You do not assign any value. Makes no difference if it is a calf, cow, or bull.

[wv112]

There is no cost to deduct for the calf. Raised cattle have no cost basis. You write off all expenses such as feed, vet supplies, etc. each year, You get a death loss on purchased cattle. Cost less depr. used equals deduction.

[barbara]

Farm animal you raise or born on the farm have no cost. Write off the expenses- feed and vet. If you purchase then you have a cost.

[Bees Knees]

Unless the farm accrual method, page 2 of Schedule F is used.

Under the farm accrual method, you add all feed, supplies, vet, etc. to cost of inventory. Then you count the number of cows on hand at the beginning of the year, the number purchased or born during the year, and the number sold or died during the year, to calculate a cost per cow for the cost of goods sold deduction. Cows that died during the year will trigger additional cost of goods sold.

The farm accrual method is a common method used for raising and selling animals.

[JohnH]

Dead calf lottery

You can hold a "Calf Lottery" to recover some of the cost of the calf that died.
I'll provide more details if you need them.

[DTS]

Animals

Thank you all for the help. I will look into the accrual method.

Sorry for using the wrong terminology when describing the calf, calling it a "baby" and a couple others I used. I was trying to think of the right terms to use when I was posting, but my mind was drawing a total blank. I learned nothing from my parents that grew up on farms!

Thank you,

Dennis