IRS grants tax extension due to drought

Farmers and ranchers who were forced by severe drought to sell more livestock than normal will get some tax relief. The Internal Revenue Service announced this week that producers making forced livestock sales due to drought can defer tax payments on any extra financial gains. Farmers and ranchers generally have four years to replace their livestock. Due to this extension, producers whose replacement period was scheduled to end Dec. 31, in most cases, will have another year to pay any taxes. The extension immediately impacts forced sales that occurred four years ago, in 2008. This extension affects all or parts of 43 states, reflecting the near nationwide drought conditions this year...more