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suerodprice
New Member

Can I deduct my son's show heifer expenses?

Son raised a heifer to show at local fairs and livestock shows.  Are the expenses of raising that heifer deductible to me? And does he have to report the sale of said heifer to the IRS?

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Accepted Solutions
Anita01
New Member

Can I deduct my son's show heifer expenses?

And no, the expenses are not deductible by you because the income would be earned income and claimed by him.  Any expense you paid for him could be considered a gift to him and therefore used to reduce his profit on the sale.

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2 Replies
Anita01
New Member

Can I deduct my son's show heifer expenses?

And no, the expenses are not deductible by you because the income would be earned income and claimed by him.  Any expense you paid for him could be considered a gift to him and therefore used to reduce his profit on the sale.

Anita01
New Member

Can I deduct my son's show heifer expenses?

Yes, he would have to report the income and expense on his own return as self-employment income, but only if the profit was over $400.  If less than $400, it does not have to be reported because it would not be enough for him to owe income tax and he would owe no self-employment tax on less than $400.  This answer assumes he has no other income.

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