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Law Office of James D. Lynch, PLLC

3000 Joe Dimaggio Blvd #90, Round Rock, TX 78665

info@jimlynchlaw.com

(512) 745-6347

(714) 745-3875

©2020 by Law Office of James D. Lynch, PLLC. The information contained in this website is for informational purposes and is not to be considered legal advice.  Any correspondence between you and the Law Office of James D. Lynch is not intended to create an attorney-client relationship.  Please do not send confidential information to us until after an attorney-client relationship has been established by an engagement letter signed by the proposed client and our attorney.

  • James D. Lynch

Farmers and Ranchers Affected by Drought Have Extra Time to Sell Livestock

Drought can be devastating to farmers and ranchers. Those who were forced to sell livestock due to drought may get an additional year to replace the livestock and defer tax on any gains from the forced sales.


The one-year extension gives eligible farmers and ranchers until the end of the tax year after the first drought-free year to replace the livestock that was sold on account of drought. As a result, qualified farmers and ranchers whose drought-sale replacement period was scheduled to expire at the end of this tax year, December 31, 2019, in most cases, now have until the end of their next tax year.


The farmer or rancher must be in an applicable region, which is a county designated as eligible for federal assistance plus counties contiguous to that county. The farmer’s county must be listed as suffering exceptional, extreme or severe drought conditions by the National Drought Mitigation Center. All or part of 32 states, plus Guam, the U.S. Virgin Islands, Puerto Rico, and the Northern Mariana Islands, are listed. The list of applicable regions is in Notice 2006-82 (https://www.irs.gov/pub/irs-drop/n-19-54.pdf).