O.T. - butcher beef/taxes???

PJH · Apr 4, 2012

Is there a simple way to seperate the expenses of a beef that you're going to eat from the rest of the feeders that you're going to sell?

Paul

rrlund · Apr 4, 2012

I think the logical question here is,why would you want to? Would you not want to write off the expense of raising it if it had just died?

Mike (WA) · Apr 4, 2012

As rrlund implied, most probably just kind of let it disappear into the crowd. But if you want to do it all above board, "sell" it to yourself for about what you think you have in it, and show that "sale" as income on your Schedule F.

DoubleR · Apr 4, 2012

I usaually have one that dies every year for some reason or another.

kyplowboy · Apr 4, 2012

I tell the guy who does my taxes that one steer just died every year, that happens, critters just die. He knocks a big chunk off my bill if I bring him a brisket.

Dave

Case e · Apr 4, 2012

I would just sell it to yourself and take another loss! 6.50 corn, hay at 6.00 for small squares, 1.65 feeder calves, protine, fuel, electricity, water.....you will save yourself thousands!!

Anonymous-0 · Apr 4, 2012

Well I ain't no farmer, But yeah, dang thing going to die fore you can eat it.

rrlund · Apr 4, 2012

Things happen:wink wink,nudge nudge.

LAA · Apr 4, 2012

You don't have to seperate the expenses, simply sell the animal to yourself for a break even price, include that amount in your gross sales and include his expenses in your deductions with the rest of the calves, you can even sell him to yourself as freezer ready beef and that way deduct the processing expense, just ensure it is a break even deal, don't take a loss. You can sell the animal to yourself for cost without raising any eye brows or doing anything dodgy, you have the right to set the price of your own product.

JMS/.MN · Apr 4, 2012

When I had livestock, my CPA just put down a very reasonable price for one steer and one hog each year, as being for the house. He is very aggressive, but never an IRS challenge in decades. They appreciate a bit of honesty, know it happens, so just be reasonable. Same thing for cost of insurance for the home vs farm. I"ve always taken 75% of utilities for the farm.

Nathan (SD) · Apr 5, 2012

One of my friends gets a newsletter from his tax accountants. In the newsletter this spring they had some rates published to use for your 2011 tax return. Had cattle,hogs,poultry and I think even milk from the bulk tank. The company was called Corporate Farmer from IA.

PJH · Apr 5, 2012

Thanks for the comments - I've been selling it to myself and showing it as income, and I'll continue to do that. I just wondered what others do in that situation.

Paul

Chester5731 · Apr 5, 2012

(quoted from post at 16:12:17 04/04/12) I usaually have one that dies every year for some reason or another.

I thought I was the only one that had that problem. I am happy to see that I am not alone.

O.T. - butcher beef/taxes???

PJH

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rrlund

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Mike (WA)

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DoubleR

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kyplowboy

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Case e

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Anonymous-0

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rrlund

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LAA

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JMS/.MN

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Nathan (SD)

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PJH

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Chester5731

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