I have a new client who came from h&r block. They have a farm and breed dogs last year they claimed schF for the farm animals and a C for the dogs. I cant find the right class of depreciation for the *****s or the studs (if Different) also what do I do with the pups that die after birth? are they a loss if so how do I come up with the amount. Is C where this should be? HELP
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puppies
Well, the puppies are obviously inventory. The breeding animals may not be subject to depreciation since they don't have a determinable life. Yes, I know horses and goats are on the chart, but they have better lobbyists in Congress. -
The breeding dogs are subject to depreciation if they have a life longer than one year. Use the 7-year recovery period if you can't find them listed in any other class life.Comment
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Dog breeding can you walk me through this. It's my first. I am not getting it
OK So she buys 3 dogs. is that when you start depreciating them? or when she starts breeding them 2 years later? it sounds like that is when you have an inventory. and then the cost follow your inventory. correct?
so if that is the case, they are inventory for 2 years? and then down the line when they have babies that is also part of the inventory? so how is everything depreciated.?? HELP :O) i thought that anything that was breeding had to be depreciated (even if they don't have it shown on the chart- and then it would fall into the 7 year class)
thank you in advance for any and all help you can send my way.
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