I agree with you, JD, but what bothers me is what Dave brought up- Form 4797 says "Depreciation allowed or allowable"- so I think you're stuck, if you characterize it as "business property". You could call it "investment property", but then I don't think you get capital gains on the gain. What gripes me is that "depreciation" is supposed to reflect the decrease in value of business property as it wears out. That works with machinery, but I bought the real estate in a short sale, for less than its FMV at the time, and I knew I'd make money on it when I sold 10 or 15 years later. So why depreciate it? Its almost like an IRS trick to dribble out the deprecation tax break a little at a time, then sock you with recapturing the whole thing when you sell, and bumping you into a higher bracket. Grrrrrr. . .
With cows, I think you can just ignore the depreciation altogether, and just account for them on Schedule F (sale of purchased livestock). But you won't get capital gains treatment on them that way. But I think it would be rare to buy a brood cow, depreciate her out over 5 years, and have much of a recapture, much less a capital gain.
Upload one or more videos to your post. Photo filesizes should be less than 300K and Videos, less than 2MB. Formats allowed are gif, jpg, png, ogg, mp4, mov, and avi. Be sure to use filenames without spaces or special characters, and filetypes of 3 digits lower case.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - 12-Volt Conversions for 4-Cylinder Ford 2000 & 4000 Tractors - by Tommy Duvall. After two summers of having to park my old 1964 model 4000 gas 4 cyl. on a hill just in case the 6 volt system, for whatever reason, would not crank her, I decided to try the 12 volt conversion. After some research of convert or not, I decided to go ahead, the main reason being that this tractor was a working tractor, not a show tractor (yet). I did keep everything I replaced for the day I do want to restore her to showroom condition.
... [Read Article]
Latest Ad:
1964 I-H 140 tractor with cultivators and sidedresser. Starts and runs good. Asking 2650. CALL RON AT 502-319-1952
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
