Question

History Bookmarks People Window Help 9960 ETC - Tax Courses Drake Basic 1040 Tax Courtex define diductable - Google what is a modules/1049/modules/finalexam/safari3/index.html?dhtmlActivation inplace&courselD 1049&testID18 studentID=159636&return Final Test Drake Software Basic 1040 Tax Course Schedule F is used to report profit or loss from farming. Which of the following is entered on Form 4797, Sales of Business Property, rather than on Schedule F? Sale of livestock bought for resale Sale of produce or grains Sale of livestock raised Sale of livestock held for sport or dairy PREVIOUS NEW DATOT A wg

Answer 1

A farmer has no cost (basis) in a raised animal since the expenses of raising the animal were deducted while it was being raised. The sale of the breeding livestock may result in a taxable capital gain. The sale of the breeding livestock is reported on Form 4797. These sales include cows and heifers raised for breeding purposes, bulls and other cull breeding animal sales.

So, this would be part of Form 4797 and not part of Schedule F.