Hollywood Cattle Company "preserving legends of the west!"
Registered Texas Longhorns
Why Longhorn Beef?
With most other types of cattle, the butcher has to ‘try’ and trim the fat off.
Longhorn cattle are ‘naturally lean’ (no fat to cut off).
Longhorn beef is lower in fat and cholesterol than skinless chicken!
In the "Old West" around 1865, cowboys were off fighting the Civil War. The American Longhorns had to fend for themselves on the open range, they became naturally hardy and lean. Today, that same adaptability holds true.
Most other cattle breeds are genetically engineered to be fat. Then they are sold on the hoof by the pound, so it pays to fatten them up, especially right before the sale. This is done by force feeding grain for about 90 days in a feedlot. Then the butcher tries to create lean meat by trimming off the fat. Longhorn cattle are lean by their nature.
Marketing Longhorns
by Charlene Semkin
The five major markets for Longhorns.
THE SHOWMAN
These people are interested in showing their cattle or just showing off their cattle. They appreciate genetics, horn, color, and body; and understand that you pay for quality. They may be looking for a hobby and generally want “eat out of your hand” gentle cattle. They are also interested in the investment possibilities.
INVESTORS
These buyers want an investment that does not sit in a safe deposit box, but rather one to enjoy while reaping the tax benefits. They want eye appeal and disposition. They usually board their cattle. (This is a service that we offer to our investors.)
PUREBRED BREEDERS
These buyers purchase the top 10% of our bulls and 90% of our females. Their marketing is aimed at the same five types of buyers. Quality, variety, and genetics are important.
COMMERCIAL BREEDERS
These buyers want big, beefy bulls to breed to their first-calf heifers and sound producing range-type females to produce their own bulls. They do not care about horn or color just big bodies and sound milkers. They utilize Longhorn genetics for calving ease, disease resistance, longevity, browse utilization, and old-fashioned good mothering. They need hearty cattle to utilize rough country and recognize Longhorns as the answer.
RODEO STOCK
These are buyers who produce ropers or roping cattle. They buy our steers and only want the biggest horn at the earliest age.
Tax Advantages for Texas Longhorn Breeders
Texas Longhorn breeders are usually considered by the IRS to be engaging in a farming operation and as such are eligible for all the tax advantages afforded to farmers who submit a Schedule F with their Income Tax Return. Anyone currently raising Texas Longhorns or considering getting into the business should check with a tax accountant to see if your operation satisfies the requirements. Most states also have programs that afford tax advantages of various kinds to Texas Longhorn breeders. Here is just a brief list of programs you will want to look into:
FEDERAL (IRS) TAX ADVANTAGES
· DEPRECIATION - Section 179 election; could allow up to the first $18,500 of investment in cattle and/or other assets to be a 100% write off for the tax year in which the investment was made.
Ordinary Depreciation; cattle used for breeding purposes and other assets purchased may be eligible for ordinary depreciation which provides a deduction over a period of time.
· OTHER DEDUCTIONS - Ordinary and necessary operating expenses such as supplies, leases, feed, health care, etc. may also be deductible.
· CAPITAL GAINS - Sales of Texas Longhorns that have been held for breeding purposes can often be taxed at the capital gains rate which is lower than the ordinary income rate. (Actual holding period determines rate. Sales of animals intended to be sold rather than used for breeding purposes are taxed at ordinary income rates.)
STATE TAX ADVANTAGES:
· SALES TAX EXEMPTION; Items purchased for your ranch or farm operation are exempt from sales tax (available in most states).
· PROPERTY TAX REDUCTION OR DEFERRAL; Some states, such as Texas, have a substantial reduction in property taxes on land used for agricultural purposes. Check with your tax assessor's office for further information on local property tax advantages.
· FARM LICENSE PLATE; vehicles used on your ranch or farm, you may be eligible and could save you tax dollars on your annual tag registration. Check with the motor vehicle department for availability in your state.
Ranch: 979-421-6166 hollywoodcattlecompany@yahoo.com
PO BOX 171 Kenney, TX 77452
