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Schedule F

H

High Plains

Well-known member
Joined
Jul 17, 2006
Messages
825
Location
Nebraska
Been doing my own taxes since the first time I filed them in my teens. I don't necessarily enjoy it but I'm somewhat proud of the fact that I know how the deal works and I've slayed the dragon without paying an accountant to figure out how much I need to pay the goverment. Almost all of my income is from an employer so it's not that difficult. However, I have some cows and have fed some cattle and I guess it's time I file a Schedule F. In the past the head count was always so low on the cow/calf deal that it didn't seem like it mattered and it didn't amount to much money. Not many dollars changed hands after some services were exchanged in lieu of cash payment. I know that isn't the right approach but believe me, it wasn't but a drop in the bucket. Things have changed with a few more cattle and the cattle feeding enterprise so I'm trying to shore things up and do things right for Uncle Sam to take his share and dispense it among all those great Americans that don't pay ANY income tax.

My question is where do I file the cattle feeding venture? It was strictly an investment so I don't know if that goes on schedule f or somewhere else? I plan on doing a schedule F for the cow/calf side but don't know about the feeding deal? Anybody know? I hate to bite the bullet and get an accountant involved.
 
I plan on doing it correctly. I didn' t get rich by hiring my work done for me. :lol:

Oh yeah, I forgot to get rich. :shock:

So I see I'm currently outvoted on the approach I need to take. I'll give that serious considersation.

If anyone else would care to offer a thought, please do.
 
I am an accountant with 25 years of financial experience, the last few as tax compliance manager with one of the largest international oil companies.

After leaving the company, I bought a Colorado cattle ranch which ran about 800 cows.

I always did my own taxes - from 1958 thru 2007. When I sold the ranch, I hired a CPA to do the return starting in 2008. He has done it ever since and he charges about $200. He handles the audits although I really did like to do that.

The tax law changes faster than movie stars change lovers. Unless you are in the tax business, you can't keep up with it.

You can bandage a cut finger, but don't try heart surgery!!!

CP
 
Alright, I believe I have received sage advice from those in the sagebrush (or soapweeds). Guess I'll have to figure out a reputable firm to take care of this. Probably a bad time to be knocking on the accountant's door. :roll: Ah well, it's onward and upward!

Thanks my Ranchers friends!
 
My accountant sends out a form he has made up for farmer-ranchers. You go through your checks and deductions and such and put in the proper catagory then they go over it and fill out proper paperwork and file it for you for I think $275. No way I would ever try to do it myself for that. They say to keep your paperwork for seven years. I would hate to have to dig that much stuff out because of a mistake that I did and raised a red flag. To answer your original question I don't know. And I dought to many on here know either. :D
 
but I say go for doing it yourself, if you have been.

I have always done my own as I have always liked math and the challenge.

As for your ? cattle feeding profits and expenses goes on Sch. F.

There is a line for gross sales from raised livestock and another for purchased livestock minus original cost. Then the expenses associated with feeding enterprise are placed on the appropiate line eg feed, repairs, interest, labor, etc.
 
not a big deal.

If you are claiming feedind cattle strictly as an investment, I wouldnt. That classifies it as passive income and loss (heaven forbid). Sometimes can be hard to track, because you deduct the expenses as you pay them except for one thing-- cost of the cattle into the feedlot.

If you are already filing a schedule F-- it isnt much of a problem.

Still, do as I do and hire a CPA-- not just an accountant. A bean counter cannot represent you if you have an audit. A CPA or tax attorney can.

If you are getting a CPA to prepare and file your tax returns for $250-$275, you are doing a better job of negotiating costs than I have gotten done. So I will leave that to better people than I am.
 
I have an agreement with my banker and my accountant - - - I don't make loans or do taxes and they don't mine gravel!

I feel I am as good at math as either of them but unless I intend to do the on going schooling to keep abreast of all the new laws every year it is by far cheaper for me to hire a good professional.
 
Folks are split on the issue. That gets me to pondering this a bit more.

One thing that's different for me than for a lot of you is that I just pay the guys that run my cows once a year. It's a simple deal. I get two, three, four checks for cattle throughout the year and I get billed for all my expenses just once a year. Seems like it could still be pretty simple.

The cattle feeding deal is pretty simple too. I pay for cattle, get a check for cattle after expenses are taken out.

Gets me to thinking I could still handle this. I guess an audit is a bit of an ominous thought, but its no different for anyone.

I think I'll mull it over a bit more. :D
 
it is a simple task, that you can handle...HOWEVER, if there is a mistake, and you get an audit....it is MUCH more comforting to have a trained professional sitting there who knows when the IRS is trying to talk you into a trap....

a $400 accountant is very cheap in the long run.
 
I did mine a couple times myself, then got divorced, and wasn't making much money, so I didn't file a couple years. Eventually, I got back into the cattle, and custom haying game. I paid an accountant to clear up my old taxes and do my current years. That was back in 94, and I have paid to have them done every since.
A couple years ago, Lisa thought she would try and do ours. She got all ready to send them in, and I talked her into having our accountant look them over. Instead of owing $100, we got back close to a 1000. It was the best $200 we spent, and why we will keep having someone that is up on the tax codes do ours.
 
Mine charges me $800 we had an hour appointment on christmas eve and 2 hours in febuary. Trailer business,ranch business and personel good deal I think. There's more to doing taxes than just math.
 
$2,500 bucks a year here, I'm feeling a little taken advantage of! :shock: :lol:
My wife does the books, but the accountant deals with the company year end and tax details. We do our personal taxes ourselves. There are some great tax programmes out there.
 

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