Immature livestock bought in 2016 for breeding in 2017

[msshepard0123]

how do I list these heifers on my return this year expenses or assets and if an asset when should the depreciation start?

[Cattlerancher · Accepted solution]

If you bought yearling heifers in 2016 to breed next year, you should add them as depreciating assets when you place them into service as breeding stock which would be 2017. You can include all your 2016 expenses incurred raising the heifers on your 2016 tax return. But by the book, you would begin depreciating the cost of them in 2017. Great question!

[l_kolar2005]

When adding heifers, do I consider them a 'new' item since they are not bred when filling out the farm asset form in TurboTax?

[Cattlerancher]

If you purchased yearling heifers for breeding purposes, the purchase price of the heifers is depreciated as a new farm asset BUT NOT until the year they are bred, generally the next year. (When You Place Them Into Service as Breeding Stock)

If the heifers were born on your place (not purchased) and retained for breeding purposes, they are NOT depreciated. Instead, you expense the cost of raising them annually on schedule F and when sold they are sold as "non-depreciated business property".

[txgal51]

If December 2017 purchased heifers weren’t able to breed until June 2018 are they considered 100% or 50% business use for the year 2018?  Do you use 1/1/18 for business use start or  6/?/18 for business use start date?  I don’t have the exact breeding dates for all of them.