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Level 1
posted Oct 24, 2023 11:54:28 AM

Commercial Livestock Contract (Cattle)

I entered into said Contract a month or so ago. I paid X amount and in a year from from the date of this contract, I will receive my initial investment plus $1000. I contacted the Company and asked if they would be sending an income tax form and they said no. I assume that I'll use Form 6781 for this, next year when I receive my gains.

Am I correct? Any help would be appreciated. 

Note: I am not a Farmer. I will not be housing Cattle, they will remain in the custody of the contracted Company.

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5 Replies
Level 15
Oct 24, 2023 12:10:45 PM

I'll page @Mike9241 

Level 15
Oct 24, 2023 11:00:42 PM

i don't know what kind of contract you entered into. it does not seem like a regulated futures contract because for them it's the market value you paid vs the market value at expiration or disposition that determines your profit or loss not a "guarantee" of a fixed profit. you may need to consult a tax pro who can review the contract to give you an opinion on how to report it. 

Level 1
Oct 25, 2023 6:05:33 AM

Thank you for responding. 

What type of tax pro are you referring to? I contacted a CPA in my area, but they wouldn't help me unless I was already a client.

Level 15
Oct 25, 2023 8:44:41 AM

 a tax lawyer or CPA.  don't know why the one you contacted refused unless you become a client. contact your state CPA society or Bar association for recommendations.   warning get an estimate of fees. that's because fees could eat up a good portion of the"$1000" profit.

Level 1
Oct 25, 2023 8:54:14 AM

Thank you for the information. I will definitely try your recommendations. 

As far as the fees go "ouch".