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Thursday, December 16, 2010

Livestock Replacement

All Montana Counties except Big Horn, Carbon, Flathead, Gallatin, Glacier, Granite, Lake, Lincoln, Mineral, Missoula, Park, Pondera, Ravalli, Sanders, and Stillwater have been determined to be drought free for the 12 months ending with August of 2010. As a result, if you have deferred livestock sales resulting from drought in previous years, and you haven’t replaced the livestock yet, you will be required to do so in the calendar year 2011. If you fail to replace the livestock, and haven’t replaced with other depreciable property, you will need to amend your return for the year of the original sale and recognize the income from the livestock sale.