Drought-affected farmers and ranchers may defer tax from livestock sales
Farmers and ranchers who were forced to sell livestock because of drought in Idaho may have an extra year to replace the livestock and defer tax on any gains from the sales, according to a release from the Idaho State Tax Commission.
The deferral follows guidelines from the Internal Revenue Service and gives eligible farmers and ranchers until the end of the tax year after the first drought-free year to replace the sold livestock. The farmer or rancher must live in a region suffering exceptional, extreme or severe drought conditions, which for Idaho includes every county except Madison. The effects from drought must have taken place between Sept. 1, 2020, and Aug. 31, 2021.
The relief, according to the release, applies to capital gains from sales of livestock used for draft, dairy or breeding purposes. Sales of other livestock, such as those raised for slaughter or sporting purposes, are not eligible, nor is poultry.
Details can be found on IRS.gov.