Drought-Stricken Farmers & Livestock

Drought-stricken Farmers and Ranchers Have More Time to Replace Livestock:  The IRS announced that farmers and ranchers who were forced to sell livestock due to drought conditions in 37 states and Puerto Rico have an extended period in which to replace the livestock and defer tax on any gains from the forced sales. Normally, livestock generally must be replaced within a four-year period to qualify for gain deferral, but this extension gives farmers and ranchers who have experienced drought conditions another year to defer the gain. The IRS may allow additional extensions if the drought conditions persist. Details of this relief, including a list of the affected counties, are available in Notice 2016-60. News Release IR 2016-127 ; Notice 2016-60, 2016-42 IRB 458