Drought-stricken farmers and ranchers in county have more time to replace livestock
Farmers and ranchers forced to sell livestock due to drought have an extended period of time to replace the livestock and defer tax on any gains from the forced sales, according to a news release issued Friday by the Internal Revenue Service.
There are 86 Illinois counties, including Grundy County, that are included in the extension period.
Farmers and ranchers who, due to drought, sell more livestock than they normally would may defer tax on the extra gains from those sales, according to the news release. To qualify, the livestock generally must be replaced within a four-year period.
The one-year extension of the replacement period generally applies to capital gains realized by eligible farmers and ranchers on sales of livestock held for draft, dairy or breeding purposes due to drought, according to the news release.
The relief is for any farm located in a county, parish, city, borough, census area or district listed as suffering exceptional, extreme or severe drought conditions by the National Drought Mitigation Center during any weekly period between Sept. 1, 2012, and Aug. 31. All or part of 38 states are listed, according to the IRS.
Details on this relief, including a list of NDMC-designated counties, are available in Notice 2013-62, posted on IRS.gov.