Ag-Visors

Respiratory infection season is here for most animals and people. Generally, this is because the temperature swings and moisture increases, which are major stress factors. Stress causes the body to drop its defenses and become more susceptible to diseases in the environment. With a susceptible immune system, now we start getting a cough or snotty nose. As it progresses, the infection moves down the tract to the lungs and into full blown pneumonia. And while the infection is doing this in one calf, the coughing and snot is traveling through the air infecting others near this calf.

Last week I was reminded of one the most common mistakes everyone makes, (Failure to read directions on the label.) A client called with a bull calf that had been eating and drinking normal, on grain and hay, and the calf had died within 3 hours after feeding it. He also noted that the calf was sold and to be delivered the next week. In doing a post-mortem examination and visiting with the owner, the cause of death was determined to be enterotoxaemia caused by Clostridium perfringins type B, C or D. Now most of you will not be able to pronounce that so, I like to put it in lay terms of GUT FORM BLACKLEG.

In the Tax Court case, Richard H. Daley, T.C. Memo l996-259, an Arizona surgeon was denied deductions with respect to his cutting horse activity. The Tax Court, which in recent years has become more and more hard-nosed, concluded that the activity was not conducted for profit within the relevant IRS Regulations.

Section 183 of the IRS Code pertains to activities “not engaged in for profit.” This provision is used to disallow deductions for horse owners and all other farming-ranching activities as well as other ventures ranging from multi-level marketing to air charters. How this provision is applied and interpreted is something that the IRS Commissioner can and does influence.

Section 183 of the IRS Code pertains to activities “not engaged in for profit.” This provision is used to disallow deductions for horse owners and all other farming-ranching activities as well as other ventures ranging from multi-level marketing to air charters. How this provision is applied and interpreted is something that the IRS Commissioner can and does influence.

Another common affliction of animals this time of the year is mastitis. This is an infection of the mammary glands.

Many horse owners don’t realize the importance of Factor No. 4 of the IRS Regulations.  This Factor is called “Expectation That Assets Will Appreciate in Value,” and has taken on greater significance than formerly, particularly in situations where the taxpayer has been unable to show any profit years. Evidence that assets used in connection with the horse activity have appreciated in value can be used to dispel any notion that the enterprise is not in fact operated as a business.

I have had several lameness cases in horses lately. Most of them have been from improper trimming and shoeing. Several years ago we were having trouble getting them stood up because everyone was cutting heals to short. This led to the horse not having enough support for the tendons and boney column of their leg.

In all walks of life, a concern exists: the possibility of being prosecuted for tax evasion. Under Section 7201 of the Internal Revenue Code, it is a federal crime for anyone to willfully attempt to evade or defeat the payment of federal income taxes. By “attempt” the statute means that the individual knew or should have known that he had taxable income, which he was required by law to report during the tax years involved, but failed to report the income.

For people in the farming and livestock industries the main worry in an IRS audit is the hobby loss rule and whether certain farm losses will be allowed as tax deductions. For some people, however, in all walks of life, a greater concern exists: the possibility of being prosecuted for tax evasion. Under Section 7201 of the Internal Revenue Code, it is a federal crime for anyone to willfully attempt to evade or defeat the payment of federal income taxes. By “attempt” the statute means that the individual knew or should have known that he had taxable income, which he was required by law to report during the tax years involved, but failed to report the income.