IRS Extends Tax Break For Ranchers Suffering Drought
Wednesday, September 13th 2006, 8:38 pm
By: News On 6
UNDATED (AP) -- Oklahoma cattle producers forced to sell animals because of drought won't have to pay capital gains on their profits for one year after parched conditions end.
The update comes from the IRS.
If ranchers replace their animals, their tax liability for sales no longer exists.
Previous legislation gave cattle raisers four years -- beginning in 2002 -- to replace the livestock sold because of drought without recognizing a capital gain.
US Treasury Secretary Henry Paulson this month extended the provision for one year if in the 12 months ending August 31st there was severe, extreme or exceptional drought in a particular area.