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 - Talk of the Town: Winterizing Engines - To Drain or Not to Drain? - by Russ Berry. What is this strange attraction I have to equipment and machinery? How did I get this way? I came from the suburbs and own a small horse farm in rural Loudoun County, Virginia. You can call me a "weekend farmer." The local farmers do. Does it bother me? No. I am just happy to have their friendship. At least the word "farmer" is in my title. But what is the attraction? How can I explain the sensation and exhilaration I feel when I turn the key and hear the engine come to life (most
... [Read Article]
Latest Ad:
2022 John Deere 5045E, 4wd, front end loader and 3rd function with grapple. 120 hrs, 55k new, must sell
[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.
