Income tax write offs

[Shortytyre]

This is our first year to show and we had to build a barn and fence, clear out land for pasture, cattle trailer, ect to get this all started.  As ya'll all know, starting out is not cheap. We don't have any other cattle at this time because of course we sold my sons steer, but we do have a few horses.  Can we claim anything that we bought this year, or does this fall under a hobby?

 

[Tallcool1]

You bet you can!

I would go easy on the land improvement stuff if it were me, but the expenses that have no residual value I would darn sure utilize.

 

[GoWyo]

Talk to your accountant.  No expert here, but if I recall correctly, if you are calling this a business, you need to have some kind of document that you have a business plan and that you reasonably expect it to eventually turn a profit.  If you are looking for a way to deduct the cost of your kid's show equipment and supplies, it might not work.  If you are raising the cattle as a business venture, then it looks like a business.  Again, work with your accountant so that you properly couch it to pass scrutiny.

 

[RyanChandler]

Everything you mentioned is 100% tax-deductible. 

 

[Bulldaddy]

Your setup sounds more like a hobby that an business.  You may be able write off the improvements to your faclities but if you are audited by the IRS you will have to prove that you are operating your facilities as a business.  If you can't do that then you will be hit with a tax bill and possibly a lien.  Not fun.

 

[JSchroeder]

Don't listen to people who tell you anything is "100%" regarding your taxes without knowing the exact details of your situation.