Tax relief for drought-stricken cattlemen
As Americans across the nation deal with a late summer heat wave, cattle producers are dealing with drought and wildfire conditions that have wreaked havoc on their family-owned businesses for years.
“In many areas of the country, there’s simply no grass for the cattle to eat. Ponds have dried up and water supplies are scarce, so there’s no water for them to drink,” says Jason Jordan, manager of legislative affairs for the National Cattlemen’s Beef Association (NCBA). “Cattle producers have to liquidate their herds quickly which is hampering the profitability of their businesses. To make matters worse, many cattlemen have spent several years struggling with this situation.”
NCBA continues to work to support cattlemen suffering from drought-related conditions. In response to those efforts, Senator Ben Nelson (D-Neb.) and 14 of his colleagues sent a letter to Treasury Secretary Henry Paulson requesting that he extend the tax relief for ranchers who were forced to sell off large portions of their breeding stock as a result of drought conditions during 2002.
Previous NCBA efforts resulted in passage of the American Jobs Creation Act of 2003 which contained a provision to amend Section 1033(e) of the Uniform Tax Code. This amendment extended the tax deferment period for weather-related sales of livestock, known as involuntary conversions, from two years to four years. The amendment also stipulated that the Secretary of the Treasury could further extend the deferral period.
NCBA says extending the tax deferment period will allow producers to replace the animals they were forced to sell in 2002 at a more feasible time.
“If ranchers were forced to restock their herds now ” during our current drought ” many would be forced to sell them again quickly because there is no way to keep cattle on the ranch without feed or water,” says Jordan.
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