The IRS is offering reliev to livestock owners have sold their animals as a result of the drought.
Colorado Farmers and ranchers who previously were forced to sell livestock due to drought, now have an extended period of time in which to replace the livestock and defer tax on any gains from the forced sales. To qualify, the livestock generally must be replaced within a four-year period. The IRS is authorized to extend this period if the drought continues. The one-year extension of the replacement period generally applies to capital gains realized 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. Details on the relief are available at the Internal Revenue Service website...IRS.gov.
Colorado Farmers and ranchers who previously were forced to sell livestock due to drought, now have an extended period of time in which to replace the livestock and defer tax on any gains from the forced sales. To qualify, the livestock generally must be replaced within a four-year period. The IRS is authorized to extend this period if the drought continues. The one-year extension of the replacement period generally applies to capital gains realized 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. Details on the relief are available at the Internal Revenue Service website...IRS.gov.
