Home
Markets
EquipmentMart
Ads/Auctions
Weather
News
Radio
ILFB.org
Blogs
FarmWeekNow
FWNow by E-mail
FarmWeek Mobile
Contact Us
Main Markets
Cash Strategist
DDG/Energy Page
Submit Classified Ad
FW Classifieds
Auctions
Watch Us Grow
Main News
Cropwatchers
Main Radio
Staff
Affiliates
About RFD Radio
Tweet
Post to Your Wall.
Mull drought-related tax issues
Farmers who had to sell off livestock due to the summer drought have additional time to defer payment of capital gains taxes.
Compiled by staff
Published: Oct 5, 2012
The U.S. Internal Revenue Service (IRS) has provided farmers in designated disaster areas an extended period in which to replace animals and defer taxes on gains from drought-related forced livestock sales.
Farmers who sell more livestock than they normally would as a result of drought may defer the tax on the extra gains from those sales. To qualify, livestock generally must be replaced within a four-year period.
Farmers in areas whose drought sale replacement period was scheduled to expire on Dec. 31 in most cases will have until the end of their next tax year to replace their animals.
Read
IRS Notice 2012-62
for complete details or check with your tax advisor.
Tom Husek, IAAA small business services director, urges producers to beginning considering the tax implications of 2012 drought-related compensation.
For example, growers can report drought-related crop insurance loss payments as part of either 2012 or 2013 Schedule F income, depending on past marketing practices.
Tax deferral generally is allowed if a farmer does not receive insurance proceeds for a current year’s crop until the following year.
Check out this article for additional information or speak with your tax advisor:
http://farmdocdaily.illinois.edu/2012/07/the_2012_drought_and_income_ta.html
Permalink:
Click here
Comments
Read comments from others and share your own thoughts.
Please provide the answer to the following question:
=
Search this site:
Read More Stories
WIU Agronomy Field Day June 27
The main topics will be precision cover crops and management of weeds and western corn rootworms.
Read this story
Governor signs comprehensive hydraulic fracturing law
Hydraulic fracturing will begin soon in Illinois.
Read this story
Illinois corn is 99 percent planted
The latest weekly update from the Illinois Ag Statistics Service finds corn in Illinois is 99 percent planted and soybeans are 94 percent planted.
Read this story
Today
Week
Month
River levels rise, though not as high as thought
Illinois corn is 99 percent planted
Governor signs comprehensive hydraulic fracturing law
FarmWeek for May 20
AgFanatics podcast #33
FarmWeek for May 27
Farm bill update from Agri-Pulse
FarmWeek for June 3
Senate clears farm bill: Crop insurance, bioenergy House targets?
Illinois corn now 91% planted
Top 50
Tags
VISIT THE ILLINOIS FARM BUREAU WEBSITE
/
ABOUT ILLINOIS FARM BUREAU
Powered by iNet Solutions Group   ©2013 All rights reserved.