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 | email@example.com
Or Associate National Director of KPMG’s Cooperative Tax Services:
Brett Huston | +1 (916) 554-1654 | firstname.lastname@example.org
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.