IRS Extends Relief for HI Farmers, Ranchers
The Internal Revenue Service has extended 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.
Farmers and ranchers in all four major counties are eligible for federal assistance. Counties that border those listed are also eligible for federal aid.
In most cases, qualified farmers and ranchers whose drought-sale replacement period was scheduled to expire on Dec. 31, 2019, now have until the end of their next tax year to replace the livestock and defer tax on any gains from the forced sales, an IRS release said. 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,” said IRS spokesman David Tucker II. “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 in 32 states, Guam, the US Virgin Islands, the Commonwealths of Puerto Rico and the Northern Mariana Islands, can be found in Notice 2019-54 Extension of Replacement Period for Livestock Sold on Account of Drought, available on IRS.gov.