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Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
The IRS announced today in Release 2012-72 that they have extended the period for replacing livestock sold due to drought for another year. Normally, if a rancher is forced to sell their breeding, draft or dairy livestock due to drought, any extra sales caused by drought is allowed to be deferred for up to four years.
This release extends this for another year if the rancher's county was in a drought situation for at least one week during the period September 1, 2011 to August 31, 2012. This primarily gives relief to ranchers who had to sell their livestock in 2008 since their four year period would be ending December 31, 2012. They now have until December 31, 2013 to replace these sales.
In some cases, it may apply to years before 2008 if they were in an extended drought that had lasted until at least 2011.
IRS Notice 2012-62 lists those counties that were in this drought situation.
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