# Dead Cattle



## azmike (Jan 4, 2015)

I've been arguing with my accountant for a couple of years on how to deal with cattle deaths on the books. She insists that if we didn't pay for them we can't take the loss. I say that I want the potential earnings or value....townie CPA. We lost an old cow to heat and a calf in a flood last year.


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## swmnhay (Jun 13, 2008)

Depends cash or accural accounting?

Livestock, plants, produce, and crops raised for sale.(p65)









Losses of livestock, plants, produce, and crops raised for sale are generally not deductible if you report your income on the cash method. You have already deducted the cost of raising these items as farm expenses, so their basis is equal to zero.

If you report your income on an accrual method, casualty or theft losses are deductible only if you included the items in your inventory at the beginning of your tax year. You get the deduction by omitting the item from your inventory at the close of your tax year. You can't take a separate casualty or theft deduction.

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Income loss.(p65)









A loss of future income isn't deductible.

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https://taxmap.irs.gov/taxmap/pubs/p225-044.htm


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## Tim/South (Dec 12, 2011)

This is what I was told by our tax person.

If you buy a cow during that tax year and it dies, you can deduct it. Not one you already owned or raised.


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## woodland (May 23, 2016)

Azmike would the "loss" you're referring to be the lowering of your income that year due to not being able to sell the dead animals. That would lower your taxable income indirectly. That's how it works up in Canada (our tax system is as convoluted as yours) for cash accounting which is how every farm I know around here operates.

YMMV

P.S. Dead critters suck. The other day I just buried a bloated cow, a crippled bull that I put down along with an arthritic cow also put down as well. Worst part of the job.


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