Can you claim goats on your taxes?

Discussion in 'Goats' started by allenslabs, May 1, 2005.

  1. allenslabs

    allenslabs Saanen & Boer Breeder

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    My grandma says that you can claim goats on your taxes same as cows. Is this true? Any catches to it? Is it even worth messing with?
    Thanks!
     
  2. mpillow

    mpillow Well-Known Member Supporter

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    I don't ....not registered as a farm....

    A friend of mine does deduct her feed and vet services but she is registered with Dept.of A

    Not sure how long you can register a loss either....before IRS flags you for an audit.
     

  3. okgoatgal2

    okgoatgal2 Well-Known Member

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    i claimed as a farm, had a farm tax id from the county and just filled out the form when i did my taxes. not hard, but keep all receipts and good records of ALL sales.
     
  4. Vicki McGaugh TX Nubians

    Vicki McGaugh TX Nubians Well-Known Member

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    It has nothing to do with county or state registrations/regulations or laws on land taxes, if you run your farm be it one acre or 1000 as a business you can fill out a Schedule F for income tax. I also claim our acreage for an AG exemption at the local level, and homestead it for an additional lessening in our tax base. But the two have nothing to do with each other.

    I think keeping honest books, not necessairly the ones you use to fill out your schedule F :haha: is pretty eye opening to most folks, who find out just how expensive that gallon of milk or dozen eggs is...better yet what it's worth! You can't claim anything that is for your personal use, your eggs, milk for your fridge. But at some point, livestock is simply too expensive anymore, to keep it for a hobby for long.

    Get a copy of a Schedule F form, it's a good way to keep your books, this way what you have named your columns for bringing in income and paying out, is named the same things. ie...animals born at your place for resale, or animals purchased for resale, are your first two income columns....

    But yes it's just like cattle, horses, chickens, you pick from a list, of what you actually do at your farm and although you and I both have goats, we likely won't do the same things with them so maybe different numbers on that list.

    Vicki
     
  5. okiemom

    okiemom Well-Known Member

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    We raise boer x and are listed as a farm. I too asked if we could get deductions as I could not understand how ANY farmer could make a profit. I was told that as long as I was running it like a business, keeping records and TRYING to make a profit ie. buying/raising SELLING for a profit in mind that it was fine. My tax man who runs his own tax business and his own family farm said that of all the ranches he sees only maybe 2 make a TRUE profit and that is ONLY because ALL land and cattle was PAID FOR. We had a gazillion deductions as we are starting up and yet he said we made a profit because we were able to buy and sell our goats for a "PROFIT". Profit being I bought goats and sheep for xamount and when I sold them it was for (x+1)Now in the real world the books would have been dripping in red. If we had to eat on what we made we would be dead!!!

    We are treating it like a buisness and are very strict and follow what our tax man says. If we are audited I am very confidant that teh IRS would find nothing at fault, except not being able to make a living ranching w/o outside income supporting us. If in doubt ask your tax preparer. A tax man will be invaluable as they know all the rules. He was able to deduct items we didn't know we could deduct. He has saved us hundreds. Katharine

    check out IRS farm atax guide
    http://www.irs.gov/publications/p225/
     
  6. allenslabs

    allenslabs Saanen & Boer Breeder

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    Talked to the tax lady. Yep I can claim them. We've done long form for farm a few years now so she has everything on depreciation already. She said as long as I was in the business of goats (meaning not JUST pets but to make $ at it) then to just keep track of everything just like I do my cows.