CROPS
Corn
Soybeans
Wheat
Canola
Field Guide
Pulse
Cotton
Hay & Forage
Horticulture
Yield Data Centre
LIVESTOCK
Swine
Beef
Dairy
Poultry
Equine
EQUIPMENT
Used Farm Equipment
Farm Equipment Dealers
Machinery News
Technology
Cool Tools
OTHER RESOURCES
Ag Industry News
Agriculture Apps
Agriculture Associations and Organizations
Business & Finance
COVID-19 Resources
Farm Auctions
Farm Energy
Farm Real Estate
Farm Safety
Farm Supplies
Farm Videos
Government & Policy
Mental Health
Precision Ag Conferences
Reflections on Farm & Food History
Rural Lifestyle
Weather
Farms.com Group Businesses
Media & Publishing
Careers
Software & Services
Production Farming
Farms.com Home  › News

Drought-affected farmers and ranchers have extra time to sell livestock

Nov 20, 2019

Subscribe to our Newsletters
Drought can be devastating to farmers and ranchers. Those who were forced to sell livestock due to drought may get extra time to replace the livestock. They may also have more time to defer tax on any gains from the forced sales.
 
Here are some facts to help farmers understand how the deferral works and if they are eligible.
  • The one-year extension gives eligible farmers and ranchers until the end of the tax year after the first drought-free year to replace the sold livestock.
  • The farmer or rancher must be in an applicable region. An applicable region is a county designated as eligible for federal assistance, as well as counties contiguous to that county.
  • The farmer's county, parish, city or district included in the applicable region must be listed as suffering exceptional, extreme or severe drought conditions by the National Drought Mitigation Center. All or part of 32 states, plus Guam, the U.S. Virgin Islands and the Commonwealths of Puerto Rico and the Northern Mariana Islands, are listed. The list of applicable regions is in Notice 2019-54 (PDF) on IRS.gov.
  • The relief applies to farmers who were affected by drought that happened between September 1, 2018, and August 31, 2019.
  • This relief generally applies to capital gains on sales of livestock held for draft, dairy or breeding purposes.
  • Sales of other livestock, such as those raised for slaughter or held for sporting purposes, or poultry are not eligible.
  • To qualify, the sales must be solely due to drought, flooding or other severe weather causing the region to be designated as eligible for federal assistance.
  • The farmers generally must replace the livestock within a four-year period, instead of the usual two-year period.
  • Because the normal drought sale replacement period is four years, this extension immediately affects drought sales that occurred during 2015. However, because of previous drought-related extensions affecting some of these areas, the replacement periods for some drought sales before 2015 are also affected.
  • Details, including an example of how this provision works, can be found in Notice 2006-82 (PDF) on IRS.gov.
 
Source : irs.gov

Trending Video

It’s just a bad situation, crops and hay struggling.

Video: It’s just a bad situation, crops and hay struggling.

It’s just a bad situation, crops and hay struggling. | | Millionaire Farmer
S
 
Possibilities of on-farm composting tech
Weather drove 2019 forage challenges

Business News by Better Farming

General News by Better Farming

Forums by Agriville.com

RB Auctions Saskatoon ›
The future of mega farms. ›
2024 Saskatchewan Farmland Study ›
Geo-Political War Risk Premium: How Conflict is Fueling Commodity Prices ›
Friday Crop Report third week of June. ›
Strait of Hermuz ›
What’s in the June 21 st rain gauge ›

Machinery News by Better Farming

Keith Kreps Appointed President of 21st Century Equipment
Keith Kreps Appointed President of 21st Century E... ›

Crop News by Better Farming

Ontario tender fruit growers expect sweet and juicy 2025 season
Ontario tender fruit growers expect sweet... ›

Livestock News by Better Farming

Farm Pets Face Summer Safety Risks
Farm Pets Face Summer Safety Risks ›

Sponsored Links: 

Highest Yielding Soybeans,  PigCHAMP Grow-Finish,  Precision Agriculture,  Swine Reproduction Software
Subscribe to our Newsletters Download Farms.com Apps Advertise with us
This website uses tracking tools, including cookies. We use these technologies for a variety of reasons, including to recognize new and past website users, to customize your experience, perform analytics and deliver personalized advertising on our sites, apps and newsletters and across the Internet based on your interests.
You agree to our Privacy Policy and Terms of Access by clicking I agree.