Federal Aid to Help Replace Livestock Sold During Severe WeatherOctober 13, 2019, 9:49 AM HST · Updated October 13, 9:49 AM 0 Comments
The Internal Revenue Service is extending tax relief for Hawai’i farmers and ranchers who were forced to sell livestock due to drought, flooding, or other severe weather in recent years.
According to the IRS, most qualified farmers and ranchers whose drought-sale replacement period was scheduled to expire on Dec. 31, 2019, will now have until the end of their next tax year to replace the livestock and defer tax on any gains from the forced sales.
Sales of other livestock, such as those raised for slaughter or held for sporting purposes, or poultry, are not eligible
“Because the normal drought-sale replacement period is four years, this extension immediately impacts drought sales that occurred during 2015,” IRS spokesman David Tucker II said in a press release.
“The replacement periods for some drought sales before 2015 are also affected due to previous drought-related extensions affecting some of these localities.”
A list of all eligible areas is available here.