There are exactly 1,000 $100 bills in a bundle. According to Federal Reserve Bank Services, a bundle is comprised of 10 currency straps of 100 bills each for all bills greater than $1. A currency strap of $100 bills is worth $10,000 and a 10-strap bundle totals $100,000. Continue reading “Is Paper Currency Dead?”
What is a Derivative?
Just what is a derivative? Well first let’s define a function. A function is a relationship between any two dependent numbers. One number is the independent variable and the other is the dependent variable. This may be used for many applications such as supply and demand, marginal cost and fixed cost, rate of change, velocity, etc.
Angus Bull
Mickey (Angus Bull): Congratulations to Mr. Andy Carson of Burnett, TX on the purchase of Mickey!
Mickey is from our commercial herd. He is a 6 year old registered Angus bull. He was purchased as a virgin bull and has only been used on our ranch. Super gentle and no bad habits. An excellent breeding bull. We have kept all of his heifers so he must go. $2,500. (Sold to Andy Carson)
Inventory Cattle
Inventory is something that you sell. Prepaid supplies are used to assist your business. Raw materials are used to produce inventory. Inventory, prepaid supplies, and raw materials are all current assets. Inventory cattle are raised cattle, available for sale. Current assets are available for sale. Fixed assets are part of your business to generate income. From Schedule F (Form 1040), Profit or Loss from Farming, they refer to mama cows as livestock and other resale items. Implies that cow/calf operations buy cows to resale them. Granted, a lot of cows are culled and sold, but I would not classify them as resale cattle. Calves put on feed and sold the following year, are inventory cattle.
When you do sell mama cows, the IRS wants to know how much you paid for those cows. That amount is to be reported to the IRS on schedule F as “Cost or other basis of livestock or other items reported on line 1a”. The “other basis” is to include any feed given to replacement heifers or bulls.
Continue reading “Inventory Cattle”
Assets
Assets are the property, such as ma-
chinery and equipment, you own and use in
your business. You must keep records to verify
certain information about your business assets.
You need records to figure your annual depreci-
ation deduction and the gain or (loss) when you
sell the assets. Your records should show all
the following.
- When and how you acquired the asset.
- Purchase price.
- Cost of any improvements.
- Section 179 deduction taken.
- Deductions taken for depreciation.
- Deductions taken for casualty losses, such
- as losses resulting from fires or storms.
- How you used the asset.
- When and how you disposed of the asset.
- Selling price.
- Expenses of sale.
Prepare Your Financial Statements
You need records to prepare accurate financial
statements. These include income (profit and
loss) statements, cash flow statements, and
balance sheets. These statements can help you
in dealing with your bank or creditors and help
you to manage your farm business.
IRS Standard Mileage Rate
For 2017, the standard mileage rate for the cost of operating your
car, van, pickup, or panel truck for each mile of business use is 53.5 cents.
What Most Ranchers Do Not Know About Their Expense Write Offs
When ranchers raise their own replacement heifers, the money spent on raising those heifers cannot be expensed. Meaning, the feed that is paid for out of the ranch account is not to be deducted, as an expense, come tax time. Of course, there are many other cost related to raising heifers too. None of those cost are to be deducted as business expenses. Continue reading “What Most Ranchers Do Not Know About Their Expense Write Offs”
Hire a professional
Black & White
In the world we live in, nothing is black and white. There are a lot of gray areas. From my law classes I have learned, when it comes to questions of the law, the correct answer is always, “It depends”. Continue reading “Hire a professional”
Working on my new pens.
