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I am trying to enter in a farm asset. it asks if "I purchased this asset NEW" does this mean new to me, new asset for me, brand new tractor?
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Business & farm
Great question. You purchased 38 cows (breeding stock) and entered them as deprecating assets, good. Was this entered as a single asset group purchase (38 cows X $1000/hd =$38000) or each cow individually? What you will do is Edit the asset to report how it was disposed of from your farm business. This is done easily if the cows are entered individually. If 5 died you report that you sold them for Zero dollars. Then TT will remove them from your Asset Summary for next year. If they died after owning them less than a year this will result in a short term business loss reported on form 4797, part ll.
Here is a link to another Q&A you may find helpful;
https://ttlc.intuit.com/questions/3587134-our-cows-which-we-listed-as-assets-last-year-had-calves
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If you reported them as a group purchase you will still need to Edit this asset. Using the example above in the answer of 38 cows for $38000, you will reduce the head count from 38 to 33, then reduce your cost basis in the group from $38000 to $33000. This has removed 5 cows from that group. That 33 cow asset will remain. Now you re-enter those 5 dead cows as a new asset, 5 hd X $1000 =$5000. Edit this asset to report they were sold or disposed of from your farm, (sold for zero dollars). TT will automatically enter the loss onto form 4797, part ll.
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When you add the asset of 5, yes you add your actual cost for those 5 cows. After checking the box sold/disposed of, enter the date they died, use an average date. They just want to know how long you owned them, S/T gain or L/T gain. After entering the date click Continue, next click NO, next enter the sales price as $0 and click sec 1245 cattle and horses. Done. You should be able to review form 4797, part ll to see your loss. Note; Breeding stock does qualify for sec 179 if you choose to use it.
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