The IRS is providing tax relief for farmers and ranchers forced to sell or exchange livestock because of drought conditions in 41 states and other areas. Specifically, farmers and ranchers may have additional time to replace their livestock and defer tax on any gains from forced sales or exchanges. The tax relief generally applies to capital gains realized by eligible farmers and ranchers on sales or exchanges of livestock held for draft, dairy or breeding purposes. Sales of other livestock, such as those raised for slaughter, aren’t eligible. Learn which U.S. jurisdictions fall under the tax relief by visiting https://bit.ly/47Q4S25 and scrolling down to the appendix.
