The IRS has announced that it is extending tax relief for farmers and ranchers in drought-stricken regions of the country.
The agency said in a statement on Sept. 30 that the relief applies to those forced to sell or exchange certain categories of livestock due to persistent drought conditions.
“Under the guidance, farmers and ranchers may have an extended period of time to replace their livestock and defer tax on any gains from the forced sales or exchanges,” the agency stated.
According to the guidance issued by the IRS through Notice 2024-70, eligible farmers and ranchers whose drought-sale replacement period was scheduled to expire at the end of 2024 will now have until the end of their first tax year after the first drought-free year to replace the exchanged or sold livestock….