Income Tax Rules For Weather Related Sales Of Livestock
Cattlenetwork.com
Weather often raise havoc with the income stream on a farm. This year’s drought is no exception as livestock farmers wrestle with short feed supplies coupled with substantial increases in feed costs. A common response is to reduce herd size by selling more livestock than in a normal year. However, this has the potential of creating dramatically higher taxable income. To assist farmers with leveling such taxable income spikes, the federal tax code has two provisions (elections) that address the issue of increased income when forced to sell more livestock than normal because of a weather related situation.
