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Old 06-29-2008, 08:28 AM
 
Location: Not on the same page as most
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Hi everyone,

Hope you are all well this beautiful Sunday, in June. My dh and I are planning on starting a small scale cattle farm, in Missouri. My question is: What kind of equipment, buildings, supplies, fertilizer, animal feed and veterinary expenses, etc. can be considered expenses that are tax deductions?
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Old 06-29-2008, 09:11 AM
 
Location: Forests of Maine
31,161 posts, read 50,361,321 times
Reputation: 19892
Quote:
Originally Posted by tambre View Post
Hi everyone,

Hope you are all well this beautiful Sunday, in June. My dh and I are planning on starting a small scale cattle farm, in Missouri. My question is: What kind of equipment, buildings, supplies, fertilizer, animal feed and veterinary expenses, etc. can be considered expenses that are tax deductions?
Hmm, everything that you listed.

Buildings, Tractors, and big equipment [trailers] are all supposed to be depreciated each year. Which is truly well worth it

Livestock if kept for more than one year can be depreciated also.

Electric bill to supply fencing, also.

Dog food for your guard dog.
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Old 06-29-2008, 10:18 AM
 
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Quote:
Originally Posted by forest beekeeper View Post
Hmm, everything that you listed.

Buildings, Tractors, and big equipment [trailers] are all supposed to be depreciated each year. Which is truly well worth it

Livestock if kept for more than one year can be depreciated also.

Electric bill to supply fencing, also.

Dog food for your guard dog.
Yipee-yio-ky-aaa!
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Old 06-29-2008, 10:59 AM
 
Location: Forests of Maine
31,161 posts, read 50,361,321 times
Reputation: 19892
You should go to the IRS website, review the schedule 'F', and it's pubs.

Feel free to post your questions, most specialized areas like depreciation all have their own IRS pubs which explain in detail how to do those things and what forms to use.
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Old 06-29-2008, 11:22 AM
 
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Thanks FB!
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Old 06-29-2008, 11:57 AM
 
Location: Forests of Maine
31,161 posts, read 50,361,321 times
Reputation: 19892
Are you from Missouri?

My father is. He left Benton County, Missouri as a child during the Dust-Bowl. He got into raising cattle in California in about 1960 and did it until about 1990. Then in 1990 he moved back to Hickery county, Missouri and began raising cattle there.

He has tried to get our youngest son to move to Missouri to take over that cattle operation. While looking over the books of that operation, we saw that for my father since he moved to Missouri. it has been a money losing business,

Our son did go out to Missouri for a summer to help with the cattle. He would need a significant secondary income, to support the cattle.

My father has a pension, and a fair investment portfolio, that he uses to keep his cattle operation 'up'.
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Old 06-29-2008, 02:29 PM
 
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If you plant, do not forget federal crop insurance!
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Old 06-29-2008, 04:08 PM
 
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Talking Missouri beckons buy NY won't let us go

Quote:
Originally Posted by forest beekeeper View Post
Are you from Missouri?

My father is. He left Benton County, Missouri as a child during the Dust-Bowl. He got into raising cattle in California in about 1960 and did it until about 1990. Then in 1990 he moved back to Hickery county, Missouri and began raising cattle there.

He has tried to get our youngest son to move to Missouri to take over that cattle operation. While looking over the books of that operation, we saw that for my father since he moved to Missouri. it has been a money losing business,

Our son did go out to Missouri for a summer to help with the cattle. He would need a significant secondary income, to support the cattle.

My father has a pension, and a fair investment portfolio, that he uses to keep his cattle operation 'up'.
Hey FB,
Your Dad sounds like he likes is enjoying his cattle, regardless of profit. So, did your son like working on your Dad's farm? Are you saying that raising cattle in California was profitable, but not so in Missouri? Did something change as far as costs or supply/demand? What do you think is the reason for his business not being profitable? Your Dad must have some really fascinating stories about the dust bowl. Would love to hear about his experiences.

We are currently living in NY, about an hour northwest of NYC. We bought land already, in Wright County, Missouri and are trying to sell our house here, and make the move. The real estate market is sluggish, so not too sure when that will happen.

We probably would only have about 10-20 cows (the higher number would be cow/calf pairs.) The locals have given us an idea of the cost/profit ratio, and it is definitely not enough to live on, but could be a good supplemental income, plus it looks like it would be interesting new way of life to learn about (we are both in our fifties) We also have enough land to grow our own hay, which is what the land is currently being used for. We are very excited about this new direction in our lives. Sometimes you just need a change, and to shake things up a bit.

My dh is already enthused over the thought of having a tractor (guess it's a guy thing) and a pole barn. I like the idea of having a few horses or mini-donkeys (cutest beasts on the planet). We would also like to have a garden, chickens, a wood stove, and try to be somewhat self sufficient. Like everything else, all these things cost $. So, thanks for telling me about Schedule F. It was mentioned on another thread, but it's always good to hear about these things from people who are walking the walk, not just talking the talk. Oh, and my hubby also says he wants to have bees.

Last edited by tambre; 06-29-2008 at 04:09 PM.. Reason: spelling-Missouri beckons BUT NY wont let us go
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Old 06-29-2008, 04:11 PM
 
Location: Not on the same page as most
2,503 posts, read 5,630,179 times
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Quote:
Originally Posted by Driller1 View Post
If you plant, do not forget federal crop insurance!
Hi Driller,

Always good to hear from you! We aren't planning on crops at this point. If we do at some time in the future, we'll keep your advice in mind. Thanks!

Tambre
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Old 06-29-2008, 04:46 PM
 
Location: Forests of Maine
31,161 posts, read 50,361,321 times
Reputation: 19892
Quote:
Originally Posted by tambre View Post
Hey FB,
Your Dad sounds like he likes is enjoying his cattle, regardless of profit. So, did your son like working on your Dad's farm? Are you saying that raising cattle in California was profitable, but not so in Missouri? Did something change as far as costs or supply/demand? What do you think is the reason for his business not being profitable? Your Dad must have some really fascinating stories about the dust bowl. Would love to hear about his experiences.
Oklahoma / Missouri / Kansas were all highly productive land before all of the events which led up to the dust bowl.

In the decades since then, much of the salt deposits have leeched out, and the land is slowly regaining it's former level of production.

Every area of grass land in America has a 'carrying capacity'; a ratio; the number of head of cattle that each acre of land can support in a sustainable manner.

Some areas of the nation have a carrying capacity of 1 head of cattle per 40 acres [meaning that it takes 40 acres to sustainably produce enough calories to maintain one beef animal].

Other areas of the nation have a carrying capacity of 20 head of cattle per acre.

A valley with year around irrigation available [a phone call can result in 12 inches of flood water every two weeks] can produce a great deal of grass [or grapes, or nuts, or tomatoes, etc]. The central valley of California has the world's largest aqueduct system, which was built by the WPA during the Depression, and which provides farms with irrigation water. Making California a very highly productive farm area.

To farm you will need water.

If your water is at the whim of nature, then you may have a drought every summer. And you can expect your farm production to mimic that.



After spending a few decades in California's central valley [1934 to 1990], and being accustomed to that level of farm production. The shift to Missouri's level of grassland production has been a shock to my father.

He has now had problems with sucking his well dry. Trucking in feed, and the economy. As well as the general lower level of grass production and seasonal drought-like conditions.

My youngest son would much prefer going into the Army, rather than working to support cattle.



Quote:
... We are currently living in NY, about an hour northwest of NYC. We bought land already, in Wright County, Missouri and are trying to sell our house here, and make the move. The real estate market is sluggish, so not too sure when that will happen.
Good luck



Quote:
... We probably would only have about 10-20 cows (the higher number would be cow/calf pairs.) The locals have given us an idea of the cost/profit ratio, and it is definitely not enough to live on, but could be a good supplemental income, plus it looks like it would be interesting new way of life to learn about (we are both in our fifties) We also have enough land to grow our own hay, which is what the land is currently being used for. We are very excited about this new direction in our lives. Sometimes you just need a change, and to shake things up a bit.

My dh is already enthused over the thought of having a tractor (guess it's a guy thing) and a pole barn. I like the idea of having a few horses or mini-donkeys (cutest beasts on the planet). We would also like to have a garden, chickens, a wood stove, and try to be somewhat self sufficient. Like everything else, all these things cost $. So, thanks for telling me about Schedule F. It was mentioned on another thread, but it's always good to hear about these things from people who are walking the walk, not just talking the talk. Oh, and my hubby also says he wants to have bees.
Have fun!
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