You'll need to sign in or create an account to connect with an expert.
The income from the sale of market livestock is ordinary income reported on Schedule F (Profit or Loss from Farming). Ordinary income tax rates will apply and the income is subject to self-employment tax.
By entering the 1099 on the Schedule F you will be able to deduct expenses for raising the cow which could possibly be more than the income. No loss allowed if that is the only Farm income, but can deduct expenses up to income.
However, if this is just a one time thing or hobby, it will most likely be treated as a hobby. Under the Internal Revenue Code § 183, if an activity is not engaged in for profit, no deduction attributable to such activity shall be allowed, except as provided.
Livestock Sales - Understanding the Impact
In TurboTax Self-employed, type Farm Income in the search box in the top right click on the Jump to link. You will be able to enter income and expenses that will be placed on Schedule F.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
JB220
Level 1
brockcurry
New Member
haleyamurphy2004
New Member
ellyragone
Level 2
beamusl
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.