Small farm taxes
I incorporated an LLC this year as we began selling eggs and poultry. Now it's tax time and I'm looking for a little guidance. My question is regarding inventory vs depreciating assets. Or more specifically, valuation of poultry. I've read the IRS publications that discuss the differences between counting my laying hens as inventory or as an asset. What I haven't been able to find is extactly HOW to do the valuation. Do I just make it up as best I can? Or is there a guidance document out there that I haven't found yet? To add some specifics, I had 9 layers producing on 1/1/15. I raised up another 17, and now have a total of 26 producing. And in 2016, how do I account for the layers that I butcher and sell? Thanks in advance for your help.
Hello, probably the best person for you to contact from University of Maryland Extension would be Dale Johnson. Here is his contact information:
Principal Agent & Extension Specialist, Farm Management
A short bio can be found here:
I hope this helps!