The IRS today released an advance version of Notice 2016-60 providing an extended period of time for farmers and ranchers, who were forced to sell livestock due to drought, to replace the livestock and defer tax on any gains from the forced sales.
Notice 2016-60 [PDF 33 KB] offers relief to any farm located in a county, parish, or area listed as suffering exceptional, extreme or severe drought conditions by the National Drought Mitigation Center (NDMC) during the 12-month period ending August 31, 2016.
Today’s notice explains that the 12-month period ending on August 31, 2016, is not a drought-free year for an applicable region that includes any county on the list that appears in an appendix to Notice 2016-60. Accordingly, for a taxpayer who qualified for a four-year replacement period for livestock sold or exchanged on account of drought and whose replacement period is scheduled to expire at the end of 2016 (or, in the case of a fiscal year taxpayer, at the end of the tax year that includes August 31, 2016), the replacement period will be extended if the applicable region includes any county on a list included in the appendix to Notice 2016-60. This extension will continue until the end of the taxpayer’s first tax year ending after a drought-free year for the applicable region.
For more information, contact KPMG’s National Director of Cooperative Tax Services:
David Antoni | +1 (267) 256-1627 | firstname.lastname@example.org
Or Associate National Director of KPMG’s Cooperative Tax Services:
Brett Huston | +1 (916) 554-1654 | email@example.com
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