Livestock that’s forced to be sold due to drought has special tax treatment. Gain on this involuntary conversion can be postponed by reinvesting in replacement livestock within a set time: 4 years after the close of the first taxable year in which any part of the gain from the conversion is realized. The list of drought areas designated by the IRS for 2018 can be found in the appendix to Notice 2018-79.
New blog today! Colors Count — Make Yours Fit Your Business
