Any cattle that were purchased for sale do not have a tax basis, All costs are expensed as they occurred; purchase price, feed, vet bills, etc. There is no capital loss to be reported as the cattle had a zero basis for tax purposes and therefore, no deduction is available for the loss.
However, if your loss was to breeding stock, that had a tax basis, then you would have a loss equal to the basis of the livestock lost. This would be reported as a capital loss on your tax return.
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