Farmers, ranchers get extension

WASHINGTON — Farmers and ranchers who were forced to sell livestock due to drought conditions may have an additional year to replace the livestock and defer tax on any gains from the forced sales, according to the Internal Revenue Service.

Eligibility for Notice 2021-55, posted Monday on the IRS website, includes all 33 New Mexico counties, plus 35 other states and one U.S. territory.

The sales must be solely due to drought, causing an area to be designated as eligible for federal assistance. Livestock generally must be replaced within a four-year period, instead of the usual two-year period. The IRS is authorized to further extend this replacement period if the drought continues.

Information: irs.gov.