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 This material may not be published, broadcast, rewritten or redistributed.)
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or email@example.com.