Open to being taxed for selling more

fearrchair

In years gone by my father used to keep cows their calves and yearlings and sell 2 years (previous year etc) every year.

However we'd like to change due to workload and the fact you'd have wonder after all the effort is it economical at all to keep older stock.

We sold this year's 2yrs recently and now would like to sell the yearlings (2015).

However someone said to us that we could be open to paying extra tax that to hold them after Jan 2017, has anyone experienced this...

J.O. Farmer

You will be open to being taxed more as you will have more income. However you will be putting off the problem until next year holding them over until January.
Scenario 1
You sold 2014 calves in 2016, and now sell 2015 calves in 2016. You sell 2 years calves the same year.

Scenario 2.
You sell 2015 calves in 2017, and sell 2016 calves in 2017. You sell 2 years calves the same year.

Scenario 3
You sel 2015 calves in 2017 and wait until January 2018 to sell 2016 calves and continue this pattern. You sell 1 years calves each year but are carrying them for a part of a second winter defeating the purpose of the change in system.

The other thing to consider is now or January a better time to sell or would it have been better to sell yearlings earlier.

Perhaps best to talk to an accountant but what is the plan with keeping less young stock. You could offset the extra income by purchasing more cows if you plan to keep more.