Tracking livestock—whether you raise them or purchase them—can have a huge impact on your bottom line. Proper classification of each animal lets you depreciate certain livestock for tax benefits, and if you’ve held them long enough for breeding or dairy purposes, you may even qualify for lower long-term capital gains rates when you sell. By keeping accurate, detailed records—from costs and holding periods to sales transactions—you not only stay compliant with IRS requirements, but also position your farm for more profitable outcomes. This attention to detail ultimately transforms what feels like mundane paperwork into a strategic advantage.