Contact UsWe never showed our cows on our taxes. We are retired. Due to poor health had to sell them. Collected 40,000.00 do we have to show that as income?
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Tax Professional Answers
John Stancil
Yes, you do. That is a taxable transaction. However, if you had any cost basis in the cows, you can deduct that basis from the proceeds to reduce the amount of tax due. You might consider filing amended returns for the past three tax years to show any expenses incurred in feeding and caring for the cows.
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424 weeks ago