DES MOINES, Iowa (KWQC) – Farmers and ranchers who were forced to sell livestock due to drought now have an additional year to replace the livestock and defer tax on any gains from the forced sales according to the IRS.
This relief generally applies to capital gains realized by eligible farmers and ranchers on sales of livestock held for draft, dairy or breeding purposes. Sales of other livestock, such as those raised for slaughter or held for sporting purposes, or poultry are not eligible.
The designated counties in Iowa are: Adair, Appanoose, Buena Vista, Calhoun, Cherokee, Clarke, Davis, Decatur, Jefferson, Keokuk, Lucas, Madison, Mahaska, Marion, Monroe, O’Brien, Plymouth, Pocahontas, Ringgold, Sac, Union, Van Buren, Wapello, Warren, Wayne, and Woodbury.
An applicable region is a county designated as eligible for federal assistance plus counties contiguous to that county.