The Internal Revenue Service is helping farmers and ranchers who were forced to sell their livestock during the drought by extending the period of time they have to replace their animals and deferring tax on gains from the sales. The goal of the plan is to help the farmers and ranchers recoup losses due to the drought.
The livestock that was sold must have been used for dairy, breeding or draft purposes, Idaho's KIVI Fox television station. Livestock raised for slaughter or sporting purposes and poultry sales are not eligible for the tax relief the IRS if offering, Mark Glover reported for the Sacramento Bee.
Farmers and Ranchers in the eligible areas have been granted a one-year extension for replacing their livestock. Normally, livestock must be replaced within four years, but the IRS is extending it to five years.
Relief will be provided to jurisdictions in 30 states that are noted as suffering exceptional, extreme or severe drought by the National Drought Mitigation Center for any weekly period ranging from Sept. 1, 2013 and Aug. 31, 2014, Glover reported.
Find more information at www.irs.gov.
The Farmer's Tax Guide can be found here.