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Drought-Stricken Farmers and Ranchers Have More Time to Replace Livestock; Parts of 42 states and the District of Columbia Eligible for Relief

WASHINGTON – Farmers and ranchers who previously were forced to sell livestock due to drought in an applicable region now have an additional year to replace the livestock and defer tax on any gains from the forced sales, according to the Internal Revenue Service.

September 27, 2017

An applicable region is a county designated as eligible for federal assistance plus counties contiguous to that county.

This 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, or poultry are not eligible.

To qualify, the sales must be solely due to drought, flooding or other severe weather causing the region to be designated as eligible for federal assistance.  See IR-2017-164.

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