Schedule F

[smithcal9]

Hello,

My mother has 8-cows and 1-bull, and she sells approximately 8-calves each year that she sells.  She has depreciated all farm equipment years ago, so her Schedule F is fairly basic.  My mother is 88 years old and I live with her, take care of her cattle, and file her taxes.  She would like to have me take over the cattle.  Can I stop filing the schedule F under her and begin filing it under me or is this process much more complicated.

Thank you for your help!

[DianeW777 · Accepted solution]

It depends. If your mother is gifting you the cattle you can just take over the farming of the cattle. All cattle and/or equipment remains at the same cost basis as if it still belonged to your mother.

If there is no gift and she continues to own the cattle, then she would continue to file on her own tax return.

As far as equipment goes, if that is also a gift, then the value would be zero for you since she has already fully depreciated it. However, if it is ever sold, it will be a taxable event for gain or loss, as long as it is never used for personal purposes.

A gift tax is not required unless a gift is above the annual limit. This would be filed for your mother.

• Annual Exclusion: $19,000 per individual recipient, per year (2025 and 2026)
• Who must file Form 709 - Gift Tax?

[smithcal9]

Thank you so much for the help!