MENU

      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 This material may not be published, broadcast, rewritten or redistributed.

      component-story-more_media_horiz-v1-01
      FOLLOW US ON TWITTER