I have animal assets (used for breeding to create inventory) that I would like to deduct. Where would they go?

[MaryK1]

You will enter these as Business Assets.  Livestock used for breeding must be depreciated. 

Follow this path if you are in Turbo Tax Self Employed online:

1. At the top of the page, click on the Business tab  

2. Now let’s work on your business income and tax breaks (click Continue)

3. How Do You Want to Enter Your Business Expenses?   (click on I’ll Choose What I Work On)

4. Let’s Gather Your Business Info (under Farm Income and Expenses click on Update OR Start if you have not entered any information yet)

5. Tell Us About Your Farm or Farm Rental Income (I have income from operating a farm should be checked, then click Continue)

6. Farm Summary (click Edit next to farm name OR follow screens and enter information until you reach the Farm Summary page)

7. Your Farming Income and Expenses (under Farm Assets, click Start OR Update next to Assets depreciated in Turbo Tax associated with this farm)

  For more information, see https://www.irs.gov/publications/p225/ch09.html#en_US_2016_publink1000218457

[Cattlerancher]

It is not "required" to depreciate breeding livestock but usually your best option. They can also be held in inventory but once you choose a method, you can not change it. Depreciation allows the capital cost deduction up front in stead of in the year it's sold.