Posted 8:56 pm Sunday, September 30, 2012
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Ranchers' herd-replacement, tax-deferral time extended
Staff Reports
Farmers and ranchers who were forced to sell livestock because of the drought have an extended amount of time to replace their herd and defer tax on any gains from the forced sales, the Internal Revenue Service announced.
Farmers and ranchers who were forced to sell livestock because of the drought have an extended amount of time to replace their herd and defer tax on any gains from the forced sales, the Internal Revenue Service announced.
Those who sell more livestock than they normally would, due to drought, may defer tax on the extra gains from those sales, according to a prepared statement. The IRS is authorized to extend the one-year extension of the replacement period if the drought continues. It generally applies to capital gains made by eligible farmers and ranchers on sales of livestock held for draft, dairy or breeding purposes due to drought. Sales of other livestock, such as those raised for slaughter or held for sporting purposes, and poultry are not eligible.
