Animals used in Business otherwise than as Stock-in-Trade - Section 36(1)(vi)

Animals used in business deduction: cost less sale proceeds allowed when animals become permanently useless; depreciation disallowed.

Deduction is allowed when animals used in business otherwise than as stock in trade die or become permanently useless: the allowable amount is the actual cost of the animal less any amount realised on its sale. The term animals includes birds and chickens. Depreciation is not permissible for animals used in business; the loss is recognised by the cost minus sale proceeds deduction when the animal ceases to be usable.