Raising Purebred Dogs

[LindaK]

Hi, I'm working on the 2nd-to-last extension return. The client has started a side business of raising and selling purebred dogs. It seems logical to me that the breeding stock would be depreciable, since breeding cattle, goats, sheep, horses, etc. are. In the past I have used MACRS with a 7-year life, but I'd like to find something to rely on in choosing the method/life. I can't find anything specific in the 4562 instructions or Pub. 167.

Would they be eligible for S179 write off? Again, since farm livestock is, it seems logical that dogs would be as well, but I'd like to see it in writing.

Thanks,
Linda

[ChEAr$]

Had such a client once upon a time

Hi, I'm working on the 2nd-to-last extension return. The client has started a side business of raising and selling purebred dogs. It seems logical to me that the breeding stock would be depreciable, since breeding cattle, goats, sheep, horses, etc. are. In the past I have used MACRS with a 7-year life, but I'd like to find something to rely on in choosing the method/life. I can't find anything specific in the 4562 instructions or Pub. 167.

Would they be eligible for S179 write off? Again, since farm livestock is, it seems logical that dogs would be as well, but I'd like to see it in writing.

Thanks,
Linda

and effectively used section 179 in combination with 7 year MACRS as appropriate year to year.

[Gene V]

A few links to earlier post

http://www.thetaxbook.com/forums/showthread.php?t=958&highlight=breeding+dogs

http://www.thetaxbook.com/forums/showthread.php?t=950&highlight=breeding+dogs

http://www.thetaxbook.com/forums/showthread.php?t=5939&highlight=breeding+dogs

[LindaK]

Thanks

I appreciate the replies. I did try to find earlier threads, but must not have used the right words.