Extension, Cooperative

 

Date of this Version

1996

Document Type

Article

Comments

© 1996, The Board of Regents of the University of Nebraska on behalf of the University of Nebraska–Lincoln Extension. All rights reserved.

Abstract

This NebGuide discusses the tax implications of reducing or shutting down a beef-cow operation.

Downsizing cattle numbers is occurring through herd reductions and complete liquidations. Whether partial or complete, liquidations have income tax implications. Those implications vary depending on the timing of liquidation, origin of the animals liquidated, nature of the liquidation, and organizational structure of the business. This publication considers the tax situation of the sole proprietor beef cattle business owner who uses cash accounting for tax purposes.

While the information contained in this document is thought to be accurate, it should not be used as a substitute for professional advice. Consult with your legal and tax advisors before making any decisions.

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