I purchased breeding stock this year for my business. On the schedule c depreciation it asks what kind of asset the item is. The only one that seems appropriate is the Other Asset Type. But the note says to only use that category if I am well versed in depreciation rules.
Would that be the appropriate catergory to put the expense under?
The reason it indicates you should well versed, is that you will need to understand the appropriate depreciation period. This will vary depending on the type of breeding stock; which you do not mention. Dairy cattle, sheep and goats are 5 year property. Horses will vary depending on their age. You also need to consider whether they qualify for bonus depreciation, however, that will depend on whether the breeding stock was used as breeding stock prior to your purchase.
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