depreciating a cow in 1 yr?

[Gargan]

As opposed to paying some capitol gains taxes for 2011 on some timber money, i was thinking about buying a few cows. Does anyone know if a cow or cows can be depreciated in 1 yr to offset the capitol gains? Or am I doomed and must pay up to uncle sam?

 

[sue]

As opposed to paying some capitol gains taxes for 2011 on some timber money, i was thinking about buying a few cows. Does anyone know if a cow or cows can be depreciated in 1 yr to offset the capitol gains? Or am I doomed and must pay up to uncle sam?

Buying cows, visiting customers, attending ag events alway helps to offset income.  Pretty sure vet and or embryo transfer expenses help too?? I hope you have a  accountant that has cattle- they can help you sort this one out.

 

[chambero]

Yes - its called a Section 179 deduction

 

[Gargan]

Dk

Yes - its called a Section 179 deduction

.          Thank you for the info!

 

[CCW]

section 179 depreciation like chambero said. any asset for the business can be depreciated this way. Tractor, farm truck, cattle trailer, and cattle are all eligible.

 

[jason]

Section 179 was the famous escalade, hummer write off.  I think they may have somewhat closed that loop hole by capping it at 25k for suv that weigh over 6k.  However, farm trucks should be able to get a full deduction.

 

[doc-sun]

As opposed to paying some capitol gains taxes for 2011 on some timber money, i was thinking about buying a few cows. Does anyone know if a cow or cows can be depreciated in 1 yr to offset the capitol gains? Or am I doomed and must pay up to uncle sam?

section 179 can't directly offset capital gains on an individual 1040.  if you buy cows, you report them on schedule f.  sec 179 on the cows cannot push the farm into a loss situation unless you or your spouse have schedule c or w2 income that it can offset.  if you have that income it will work.  you can buy heifers and take 100% bonus depreciation on new property for 2011 and it can push schedule f to a loss without the other c or w2 income requirement.  cows that have calved are not new property.