WASHINGTON COUNTY — Utah farmers and ranchers who previously were forced to sell livestock due to drought, like the drought currently affecting much of the nation, have an extended period of time in which to replace the livestock and defer tax on any gains from the forced sales, the Internal Revenue Service recently announced.
Farmers and ranchers who, due to drought, sell more livestock than they normally would may defer tax on the extra gains from those sales. To qualify, the livestock generally must be replaced within a four-year period. The IRS is authorized to extend this period if the drought continues.
The one-year extension of the replacement period recently announced generally applies to capital gains realized by eligible farmers and ranchers on sales of livestock held for draft, dairy or breeding purposes due to drought. Sales of other livestock, such as those raised for slaughter or held for sporting purposes, and poultry, are not eligible.
The IRS is providing this relief to any farm located in a county, parish, city, borough, census area or district listed as suffering exceptional, extreme or severe drought conditions by the National Drought Mitigation Center during any weekly period between Sept. 1, 2013, and Aug. 31, 2014. All or part of 30 states are listed. Any county contiguous to a county listed by the NDMC also qualifies for this relief.
As a result, farmers and ranchers in these areas whose drought sale replacement period was scheduled to expire at the end of this tax year, Dec. 31, 2014, in most cases, will now have until the end of their next tax year. Because the normal drought sale replacement period is four years, this extension immediately impacts drought sales that occurred during 2010.
But because of previous drought-related extensions affecting some of these localities, the replacement periods for some drought sales before 2010 are also affected. Additional extensions will be granted if severe drought conditions persist.
Details on this relief, including a list of NDMC-designated counties, are available in Notice 2014-60, posted recently on IRS.gov. Details on reporting drought sales and other farm-related tax issues can be found in Publication 225, Farmer’s Tax Guide, also available on the IRS website.
Notice 2014-60 lists the following counties in Utah
Beaver, Box Elder, Cache, Carbon, Daggett, Davis, Duchesne, Emery, Garfield, Grand, Iron, Juab, Kane, Millard, San Juan, Sanpete, Summit, Tooele, Uintah, Utah, Wasatch, Washington, Wayne and Weber.
Submitted by the Internal Revenue Service
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Why is that the feds give so many entitlements to farmers? I don’t get it. So many farmers I know profess to love conservative attitudes and capitalism, but they are so willing to take government handouts when something goes wrong or they’d rather the government pay them for their corn, to make into ethanol, instead of sell it to be eaten. Or else they’re like Bundy, who thinks we live a communist society all sharing the land, rather than doing the capitalist thing and paying for it.
[“Why is that the feds give so many entitlements to farmers?”]
Because the farmers feed us, John. 😉
Actually it sounds like the government feeds us. And how does the government subsidizing farmers to grow corn to turn into ethanol feed us exactly?
Because roughly 36 percent of U.S. corn, plus distillers grains left over from ethanol production, is fed to cattle, pigs and chickens. The cattle, pigs and chickens are then used to feed us.
Entitlements. Social Security. Obamacare. Farm Subsidies. Medicare. Medicade. No matter what you call them they’re all the same. Some political parties accept certain ones, others reject those and accept the others. No industry should be subsided. Let the private market work like it is supposed to. So much food already comes from overseas because the free market works there, and makes the food cheap. You can try and justify subsidies by saying they feed us, we need medical care to live, etc. etc. but when it comes down to it that is not the place of the federal government. To take tax dollars from someone and give it to someone else is wrong. Whether you’re a farmer or octomom. Why do you think Bundy ended up so spoiled? My family members who are farmers are the first to scream when they hear of a social program, but they are also the first to stick out their hands and take anything the government will give them.
Why does St George have its hand out for so many Federal Grants and disaster funds. Use the grant to build on flood zones and then demand funds from FEMA when those developments get washed out.
It’s called hypocrisy …or maybe just ignorance?
Perhaps you would like to have all of our food imported from foreign countries,we need to support our rancher s and farmers. Would’ it be great if we had to depend on orher countries to feed our people.
Good luck trying to explain this Dave. Everybody has been so citified they have NO idea how hard it is for farmers and ranchers to even turn a profit. Why do you think so many old timers have gotten out of it and their families or children don’t run them anymore? Because it isn’t nearly as lucrative as it used to be and almost impossible in severe drought conditions. The major problem is most people these days, especially young adults in my opinion literally think that “food comes from the grocery store dude!” and have absolutely no idea how it got there.
It’s a new program that Obama and the Democrats have implemented. It’s called “Water For Guns”. Farmers and ranchers have to exchange their guns for more water rights. They have to support the Affordable Care Act (aka Obamacare) and vote Democrat in the next election, too, if they want to sustain those water rights.