It depends: Livestock held for sale can be part of your inventory. Livestock for draft, breeding or dairy purposes can be inventory or can be depreciated. If you are breeding livestock, it is inventory.Inventory can be entered with the cost of good sold while assets are depreciated.Take a look at Publication 225, Farmer's Tax Guide and determine which rules apply to your livestock and how they need to be treated.

Question

I own a small farm and have livestock. I live in a taxable agricultural property. How do I take federal deductions on my livestock?

Forum|Forum|1 year ago
April 3, 2025
1 reply
0 views

No text available

TurboTax Free Edition Online

AmyC

It depends:

Livestock held for sale can be part of your inventory.
Livestock for draft, breeding or dairy purposes can be inventory or can be depreciated.
If you are breeding livestock, it is inventory.

Inventory can be entered with the cost of good sold while assets are depreciated.

Take a look at Publication 225, Farmer's Tax Guide and determine which rules apply to your livestock and how they need to be treated.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"