4H steers

[dfarms11]

Hey, we are needing to fill our freezer but dont have anything ready to butcher and got to thinking about a 4H steer. If any of you guys buy them, do you use them as a tax deduction? My accountant doesnt want to use it because I will be using it for personnal use but I have talked to a couple others who say it is most definitely a deductable expense. Also, if you do use it, does your accountant fully approve it?

Thanks

[bucket]

Buy it, butcher it and call it a dead loss on agristability.

[FarmRanger]

If you use it for personal use, it would be non-
deductible. Perhaps if you paid a higher than
market price you might be able to claim the
difference between the actual calf's value and the
4H premium. Don't know what you'd call that
expense though.
I'm pretty sure deducting the entire cost would be
considered tax fraud, unless you donate the meat
to some eligible charitable group.
I'd listen to your accountant.

[perfecho]

IMHO, the going rate for a steer is non-deductible; however what you pay above market price could likely be coded to "Marketing." (If you use the steer for personal use)

[grgsrvc]

If 4H is supposed to be about fairness and all the
other good things in life, why do us adults overpay
the kids for their steers? Seems to me that you
could teach these kids a little bit more by paying
market price. IMO

[perfecho]

Or teach that marketing and doing things differently can pay dividends.....not everyone just unloads at the auction market and goes home to wait for cheque.......

[newguy]

Purchaced a 4-H calf at Market price from a buyer that did not want all the beef . Then donated 100 bucks directly to the 4-H club.I got a great beef and my donation went to all the kids in our local club.

[perfecho]

There are many ways of doing it. Last year our club averaged 3.25/lb. Normally, I can buy one or two back to fill freezer orders, however, last year no one would give up their steer. More and more people LOVE the taste, like the "local" and “ethically raised” part and enjoy the experience.
With our of farm meat sales, we do not charge by the lb....we charge by the quarter. I put in what price that I feel is profitable, add the cutting charges and sell accordingly. This is not a big part of our business, never was meant to be, but grew out of the girls 4-H membership.
With our bull sales, there is a direct correlation with time spent marketing and sale average....the more time and effort, the higher the average. Sometimes it pays to change things up.

[malleefarmer]

completley different laws than australia butif you guys run you operations as a company and pay your self a wage then meat can be claimed.

if you just draw money out to live on rather than a "wage" not deductable

[malleefarmer]

completley different laws than australia butif you guys run you operations as a company and pay your self a wage then meat can be claimed.

if you just draw money out to live on rather than a "wage" not deductable