Hey ,
The Internal Revenue Service (IRS) has made an announcement that might interest you or someone you know involved in farming or ranching activities.
They have extended relief to eligible farmers and ranchers who were forced to sell livestock due to drought conditions. If you or someone you know is affected, please take note of the following key points:
Extension Details
- Eligible farmers and ranchers, who had to sell livestock due to drought, now have an extended period of time to replace the sold livestock and defer tax on any gains from the forced sales.
- This relief applies to capital gains realized on sales of livestock held for draft, dairy, or breeding purposes.
- The extension period for replacing the livestock has been extended from the usual two-year
period to a four-year period. The IRS may further extend this replacement period if the drought continues.
- The extension allows eligible farmers and ranchers until the end of their first tax year after the first drought-free year to replace the sold livestock.
Applicable Regions
The relief applies to areas designated as eligible for federal assistance due to drought. The applicable regions, including 49 states, the District of Columbia, two U.S. Territories, and two independent nations in a Compact of Free Association with the United States, are listed on IRS.gov.
Action Required: If you or someone you know qualifies for this
relief, it's essential to review the Notice 2023-67 posted on IRS.gov for detailed information on eligible regions and the replacement period.
You can also seek the help of a tax professional to take you through the journey of taxes – including tax planning – which comes with more money-saving benefits.
If you need any help with your taxes, call my office at 202-618-1297 or click the link below.
