How to enter income and costs for cattle purchased for sale of beef

[cattle_rancher]

Hi,

We purchase cattle and finish them off in order to sell grass-fed beef. 

What is the correct way to inter income and expenses for the purchase of cattle and sale of the beef on a Schedule F? 

Do I list the income of the beef as "Sales of Livestock and Other Items Bought for Resale" and the cost as "Cost of Items Bought for Resale" or is the income from the sale of beef "Other Farm Income" and the cost of the animals as a "Miscellaneous Expense"? Or something else?

Thank you for your help,

[tagteam]

You might want to check with a local tax professional who specializes in farming taxation.

However, you would most likely enter the income as Sales of Livestock and Other Items Bought for Resale as you would only report the sales on another form if you were holding for breeding or dairy purposes.