Farmers and ranchers forced to sell livestock because of drought conditions may have more time to replace their livestock and defer tax on any gains from the forced sales. The IRS recently announced a one-year extension which gives eligible farmers and ranchers until the end of their first tax year after the first drought-free year to replace the sold livestock.

How the extension works
This extension applies to eligible farmers and ranchers who qualified for the four-year replacement period, if the they were suffering exceptional, extreme or severe drought conditions as determined by the National Drought Mitigation Center during any week between September 1, 2021, and August 31, 2022.


Learn more details from IRS guide:
https://www.irs.gov/news...-extension-of-tax-relief 

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