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#2
03-29-2005, 11:30 PM
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 Re: What do about these beef menawach[at]msn.com wrote: - quote - > Client bought five beef on the hoof in Apr 04. Put them on
Schedule F unless the livestock was held for draft,> daddy's farm to fatten up. Sold them in Nov 04. Can't put > them on Schedule F 'cause she aint no farmer. I put them on > Schedule D, called them personal property, and she claimed a > capital gain. She had no expenses. Any thoughts on this or > how you might have handled these depreciable assets. > Transactions of this nature on Schedule F usually call for > an SE to be filed. breeding, sport, or dairy purposes. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
03-29-2005, 11:11 PM
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| Re: What do about these beef menawach[at]msn.com wrote: - quote - > Client bought five beef on the hoof in Apr 04. Put them on
First question is how are these five beeves depreciable> daddy's farm to fatten up. Sold them in Nov 04. Can't put > them on Schedule F 'cause she aint no farmer. I put them on > Schedule D, called them personal property, and she claimed a > capital gain. She had no expenses. Any thoughts on this or > how you might have handled these depreciable assets. > Transactions of this nature on Schedule F usually call for > an SE to be filed. property? Since they are fatted cattle, they're not breeding stock, to which depreciation might apply. Capital assets? I think not. So.. where..... Ah; line 21, that's always a good place. Anyway, even if on schedule d, the gain would be short term anyway, just like ordinary income. ChEAr$, Harlan Lunsford, EA n LA, borders on UA, which borders on TN, also known as Bourbon country Sun 27 mar 2005 << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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03-29-2005, 11:10 PM
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| Re: What do about these beef menawach[at]msn.com wrote: - quote - > Client bought five beef on the hoof in Apr 04. Put them on
The only time cattle are depreciable is if they are breeding> daddy's farm to fatten up. Sold them in Nov 04. Can't put > them on Schedule F 'cause she aint no farmer. I put them on > Schedule D, called them personal property, and she claimed a > capital gain. She had no expenses. Any thoughts on this or > how you might have handled these depreciable assets. > Transactions of this nature on Schedule F usually call for > an SE to be filed. livestock. Now if they were steers, I have answered your question. Putting these one shot animals on schedule D is about right. But they are inventory, not capital assets, and they should go on 4797 if not on the schedule F. -- Frederick E. Jorden http://Tax-Accounting-Payroll.com 7825 Midlothian Tpk - 207 Richmond, VA 23235-5247 EMAIL knowtax[at]bigfoot.com (804) 320-6210 FAX (804) 320-6211 << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
03-27-2005, 12:37 PM
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| What do about these beef Client bought five beef on the hoof in Apr 04. Put them on daddy's farm to fatten up. Sold them in Nov 04. Can't put them on Schedule F 'cause she aint no farmer. I put them on Schedule D, called them personal property, and she claimed a capital gain. She had no expenses. Any thoughts on this or how you might have handled these depreciable assets. Transactions of this nature on Schedule F usually call for an SE to be filed. Ric Smith, EA Dunlap TN TN Walking Horse Country << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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