dog breeding

[featherhill]

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

[jainen]

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.

[Bees Knees]

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.

[MARLA EDWARDS]

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.

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.