If you are a farmer or rancher forced to sell your livestock because of the drought that affects much of the nation, special IRS tax relief may help you. The IRS has extended the time to replace livestock that their owners were forced to sell due to drought. If you’re eligible, this may help you defer tax on any gains you got from the forced sales. The relief applies to all or part of 37 states and Puerto Rico affected by the drought.
Here are several points you should know about this relief:
Get more on this relief in Notice 2016-60 on IRS.gov. This includes a list of states and counties where the IRS relief applies. For more on these tax rules see Publication 225, Farmer’s Tax Guide on IRS.gov.
Keep a copy of your tax return. If you filed an extension and face the Oct. 17, 2016, filing deadline, you may need your Adjusted Gross Income amount from your 2014 tax return to file. Get a transcript of your prior year’s return at www.irs.gov/transcript.