Where do i deduct livestock that died on my small farm?

I have my beginning and ending inventory of our livestock. Where do i enter the loss of a cow and a calf?
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    If you bought the animal for breeding stock it is entered as an asset, if it died, then report the sale of this asset for zero dollars to remove from your depreciation report.
    If you bought the animal to feed and then resell for gain, it would be entered on line 1ab&c of schedule F.
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      If the animal was purchased but never listed as an asset for depreciation, then list it under other expenses as "purchased animal died".  and the amount.  

      many small farmers buy animals and justt hold the cost in their books but never list it as an asset.  Only when they sell the animal, they show the selling price under animals purchased for resale, and of course, show the buying price.  the difference will be the profit/loss. 
      • Some small farmers buy animals and just hold the cost in their books---but it is wrong. Livestock held for draft, breeding, sport, or dairy purposes (bought or raised) are farm assets. The loss from an purchased asset should never offsets income subject to SE tax as it will if entered on schedule F.
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      My understanding is that if the animal was born on the farm, then you will not be able to deduct a loss for the animal.  You can however deduct any expenses you had to feed and care for the animal(s). 
      • I also think that is correct.  But if you bought it in 2012, and it died in the same year I think you  can deduct it.  I had this happen to me but I don't know where to show the loss.
      • Pub 225, Farmer's Tax Guide (2012) states: "Loss of Livestock. You cannot deduct as a loss the value of raised livestock that die IF you deducted the cost of raising them as an expense." (pg 26).  This makes me think that it may depend on your accounting method.
      • Any raised animals, used for breeding purposes OR NOT, that die, cannot be claimed as a loss on your tax return. You have no cost basis in a raised animal. Your expenses were expensed as you raised them. Your loss is the lack of an animal to sell. It has nothing to do with your accounting method.
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