Dairy and livestock operations report and deduct the the costs of veterinary, breeding and medicine which are consumed during the production cycle on Line 31, Schedule F.
Example 1. Glenda operates a pure-bred Angus herd and sells bulls and bred heifers to other cattle operations wanting to improve their genetics. This year, due to the use of a new bull, several of her first-calf heifers had to be delivered by cesarean section. Glenda’s total extraordinary veterinary for the cesarean procedures was $4,500. Glenda uses Line 31, Schedule F to report these costs as part of her total expense, which was $12,000.
Example 2. Jose spent $4,000 on vaccines for his swine herd this year. Line 31, Schedule F is where he reports this deduction, along with other like animal-health expenses.
Example 3. Martien operates a brood-mare farm. He selects sires with high potential to match the performance of his mares. This year, Martien spent $25,000 on stud fees (service by stallions) and $10,000 on semen straws (for artificial insemination) to breed his brood mares. Thus, $35,000 was his total breeding expense and Martien reports this value on Line 31, Schedule F.
The Center for Agricultural Law and Taxation is a partner of the National Agricultural Law Center (NALC) at the University of Arkansas System Division of Agriculture, which serves as the nation’s leading source of agricultural and food law research and information. This material is provided as part of that partnership and is based upon work supported by the National Agricultural Library, Agricultural Research Service, U.S. Department of Agriculture.