Happy Thanksgiving from Gardner & Billing CPAs
IRS Announces Extension on Replacement of Livestock Due to Drought Declarations
IRS: Drought-stricken farmers, ranchers have more time to replace livestock WASHINGTON − Farmers and ranchers who were forced to sell livestock due to drought may have an additional year to replace the livestock and defer tax on any gains from the forced sales, according to the Internal Revenue Service. To qualify for relief, the farm or ranch must be in an applicable region. This is a county or other jurisdiction designated as eligible for federal assistance plus counties contiguous to it. Notice 2020-74 , posted today on IRS.gov, lists applicable regions in 46 states, the District of Columbia and four U.S. territories. For Montana, the designated counties are Beaverhead, Broadwater, Gallatin, Jefferson, Madison and Powder River. The relief generally applies to capital gains realized by eligible farmers and ranchers on sales of livestock held for draft, dairy or breeding purposes. Sales of other livestock, such as those raised for slaughter or held for sporting purposes, ...
