Farmers and ranchers affected by drought across the country- 49 states, the District of Columbia and Puerto Rico, to be exact- may be eligible for some assistance through the Internal Revenue Service.
According to a news release from the IRS Tuesday, guidance was recently issued that provides “an extension of tax relief for farmers or ranchers in most states and other regions who sold or exchanged livestock because of drought conditions.” IRS Chief Executive Officer Frank J. Bisignano stated in the news release, “Large swaths of the United States continue to experience drought conditions, distressing hard-working American farmers and ranchers. By extending relief for those who sell or exchange livestock, the IRS is providing much-needed support to those who feed our nation.”
The extension of relief applies to capital gains realized by eligible farmers and ranchers from sales or exchanges of livestock held for draft, dairy, or breeding purposes; however, the sale of poultry or livestock raised for slaughter will not qualify. In order to be eligible for the extension, farmers and ranchers will need to show proof that drought prompted the sales or exchanges and that the area or region in which they operate received a federal drought designation.
Furthermore, the IRS will provide this extension to those farmers and ranchers in areas that have been listed as suffering from exceptional, extreme or severe drought between September 1 and August 31, a determination made by the National Drought Mitigation Center.
You can find additional details and information online at IRS.gov.
