Diane,
I figured that I should use the purchase price of the animal from 2023 even though I am filing the taxes for 2024.
It was purchased 9/2023 and sold 3/2024.
Similarly, I will attach a detailed log of expenses for feed, medication and other supplies for the time period from 9/2023 and sold 3/2024.
If I only submitted expenses for 2024, it would not leave much for our next animal which was purchased in 2024 and sold in 3/2025.
I just wasn't sure how the IRS handles that since typically you can only deduct expenses for the year that you are filing.
It is so much hassle to file taxes for 4H/FFA considering that the majority of students don't make any or very little profit from raising an animal and usually end of with a loss. (Example: a pig for a major show costs $500+ but unless you place in the top ranks sells for $0.30/lb which ends up $90-100 and they spent like $1,000 for the animal and the cost of raising.)
On top of that you cannot file electronically but have to mail in the return with a detailed explanation of expenses and revenue. Last year she owed $100 so I just paid but this year it is $250 since she also had a part-time job, so I am going to try the mail route which should actually get her a $35 refund. 😉
