Farmers and ranchers in El Paso County who lost livestock due to drought have an additional year to replace their stock, according to the Internal Revenue Service, which released the news Monday. Farmers and ranchers who were required to replace their animals by Dec. 31 now have one more year to do so.
The additional time frame pertains to all farmers and ranchers in Colorado.
The IRS will provide relief to any farm or ranch in a county listed as suffering “exceptional, extreme or severe drought” by the National Drought Mitigation Center, between Sept. 1, 2012 and Aug. 31. The one-year extension of the replacement period “generally” applies to capital gains realized by 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, are not eligible.
The normal drought sale replacement period is four years.
For further information, call 800-829-1040.