We have farm animals and expenses, they are not for profit can I claim them and the expenses?

[MinhT]

If you are not operating a farm for profit, you cannot claim the farm animals and the related expenses.

[dandk91709]

what if we purchased them for breeding and then later decide to sell them at auction?

[MinhT]

It depends. If you are doing it with a profit motive, then you can report this as a farming business and claim the cost of the animals and the related expenses. If this is a hobby, then you can only claim expenses up to the amount of your income.

[dandk91709]

Thank you