Source: USDA, 2/3/22
Tax season is just around the corner and there are a variety of
important considerations for farmers and livestock producers. USDA has partnered
with agriculture tax experts around the country to connect producers to
important tax information related to their operations. In February USDA is
hosting two informational webinars on income tax treatment of livestock sales
and disaster losses. Join us on February 7th and
8th for
presentations featuring JC Hobbs of Oklahoma State University to learn about
the special tax rules that may apply to your operation. Monday,
February 7, 2022: 3:00 PM Eastern Time (US and Canada) Income
Tax Treatment of Weather-Related Sales of Livestock Breeding, dairy, or livestock (excluding poultry) sold due to
drought, flood, or other weather-related condition are potentially
eligible for special tax treatment, as this sale is considered an
involuntary conversion. This presentation will cover the application of these
tax rules which allows for the postponement of gain recognition when
replacement animals are purchased. The gain from the sale of any livestock, including
poultry, in excess of the normal number of animals sold annually due to
drought, flood, or other weather-related condition may allow the
reporting of gain to be postponed until the following year. Special tax rules
apply, allowing the postponement to occur. This presentation will cover
the rules and procedures that must be followed to postpone the reporting of
gain. Tuesday,
February 8, 2022: 3:00 PM Eastern Time (US and Canada) Income Tax Rules that Apply to Disaster Losses The tax treatment for losses of property due to disasters varies
depending upon whether the item was personal, business or investment property.
In addition, consideration is given to the amount of the loss
impacted by insurance proceeds, the tax basis of the property at the time of
the loss, or disaster payments received. This presentation will cover the tax
treatment that applies to losses of property resulting from a disaster. Register
for both webinars on Farmers.gov: Beginning Farmers and Ranchers | Farmers.gov
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