Ranchers could delay some taxes due to drought
OKLAHOMA CITY (AP) - Ranchers who sold livestock in 2012 because of drought may qualify for a delay in paying some taxes.
Nathan Kemper of the Southern Risk Management Education Center says some ranchers sold because of water shortages, poor grazing, or other drought-related conditions. He says ranchers must meet three conditions to qualify for delayed tax payments.
They must use the cash method of accounting; show they would not have sold except due to drought; and the drought must have resulted in the area being eligible for federal assistance.
Ranchers who qualify may postpone reporting taxable gains - or may postpone and avoid taxes on the sale of breeding, draft or dairy animals if the animals are replaced within a specific time frame.
Ranchers are encouraged to discuss options with a tax professional.Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.