IRS Provides List of Counties That Qualify for Another Year Deferral due to Drought

Section 1033 allows ranchers four years to replace livestock sold due to drought. This time can be extended, and the IRS issues a list of counties that qualify.

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Section 1033 of the Tax Code allows ranchers to defer the gain from having to sell livestock due to drought. If ranchers must sell due to drought, they typically have at least four years after the year of sale to replace the cattle or other livestock.

However, if drought continues in their region, then this period can be extended indefinitely. About this time each year the IRS provides a list of counties that have experienced the required level of drought.