South Dakota farmers and ranchers recieve extension in tax relief
PIERRE, S.D. – In a statement released today from the Internal Revenue Service (IRS), South Dakota farmers and ranchers will receive extended tax relief for the forced sale of livestock due to drought, flooding or other severe weather in recent years.
“Because the normal drought-sale replacement period is four years, this extension immediately impacts drought sales that occurred during 2015,” said IRS spokesman Naweed Lemar. “The replacement periods for some drought sales before 2015 are also affected due to previous drought-related extensions affecting some of these localities.”
The extension is for farmers and ranchers in Brown, Edmunds, Faulk, Haakon, McPherson, Spink, and Ziebach counties with counties bordering those states potentially eligible for federal aid.
Qualified farmers and ranchers whose drought-sale replacement period was previously scheduled to expire on Dec. 31, 2019, will now have until the end of their next tax year to replace livestock and defer tax on any gains from the forced sales. The sale of livestock raised for slaughter, held for sporting purposes or poultry are not eligible.
More information on reporting drought sales and other farm-related tax issues can be found on IRS.gov; in:
- Publication 225, Farmer’s Tax Guide
- IR-2019-161, IRS relief provides drought-stricken farmers, ranchers more time to replace livestock