Question

Pay Taxes on Sold Cows Given as a Gift

Forum|Forum|5 years ago
March 8, 2021
1 reply
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I was given 2 cows as a gift, which I ended up selling in 2020. I do not own the farm and did not receive a 1099 from the stockyard for selling them. Do I need to pay taxes on the money I made on the cows during 2020? If I do need to pay taxes, how do I put this income on my taxes?

ColeenD3

Report it as an investment. Your basis will be whatever the donor paid for them initially. The difference between that and the sales price is your gain. Your investment type will be "Other".

Sales of non-security investment sales like coins, collectibles, timber, land, or a second home? Here's how you enter those:

Open (continue) your return in TurboTax.
In the search box, search for investment sales then select the Jump to link in the search results.
Answer Yes to the question Did you sell stocks, mutual funds, bonds, or other investments in 2020?

B

bethany8259Author

Hi Coleen,

Thank you for your quick reply. I should have specified earlier, the 2 cows I was given were twin calves that the momma cow wouldn't take, so I took care of them. Therefore, these calves were not purchased, but were born on the farm. The momma cow was also born on the farm as well. Therefore, there was no price paid for the calves or momma cow. Please advise.