If you did not sell any of the cattle this year then keep records of your purchase costs for when you do sell the cattle. If you are an accrual basis farm this is reported under the Farm Income section under 'Cost of goods sold'. If you are a cash basis farm this is reported in TurboTax under Farm Income section under Livestock, grain, produce, customer work, co-ops'. Instead, you report the purchase cost during the year you sell the cattle. You do not get a deduction for the purchase of cattle in the year of purchase unless you purchase and sell the cattle in the same year. If the cattle were purchased for draft, breeding, or dairy purposes you have the choice of treating the cattle as an asset or inventory. For example if you purchase a calf with the intention of selling it at maturity, the calf would be considered inventory. If the cattle were purchased with the intention of selling to others then the purchase is reported under Inventory.

How you treat the purchase of cattle and other livestock depends on how you will use the livestock on your farm, always entering as one, not individually.

How to use intuit mint