ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Ag Banking

IRS extends relief to farmers and ranchers affected by drought

September 27, 2023
Reading Time: 2 mins read
IRS extends relief to farmers and ranchers affected by drought

Farmers and ranchers forced to sell livestock due to drought may have an extended period in which to replace the livestock and defer tax on any gains from the forced sales, according to a recent IRS decision.

The relief generally applies to capital gains realized by eligible farmers and ranchers on sales of livestock held for draft, dairy or breeding purposes. Sales of other livestock, such as those raised for slaughter or held for sporting purposes, or poultry, are not eligible. The areas covered include 49 states, the District of Columbia, and two U.S. territories.

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. The one-year extension, announced in the notice, gives eligible farmers and ranchers until the end of their first tax year after the first drought-free year to replace the sold livestock.

As a result, eligible farmers and ranchers whose drought-sale replacement period was scheduled to expire on Dec. 31, 2023, in most cases, now have until the end of their next tax year to replace the sold livestock. Because the normal drought-sale replacement period is four years, this extension impacts drought sales that occurred during 2019. The replacement periods for some drought sales before 2019 are also affected due to previous drought-related extensions affecting the same locations. 

Tags: Farm bankingRural banking
ShareTweetPin

Related Posts

Predicting what is ahead for banks

Compliance and Risk
January 21, 2026

Bankers face challenges and opportunities in multiple key areas.

Banking agencies release CRA data on small-business, small-farm lending in 2023

ABA offers recommendations for implementation of new ag lender tax benefit

Ag Banking
January 20, 2026

ABA offered several recommendations for how the IRS should implement a new tax benefit for lenders serving rural and agricultural communities, which was included in a tax package passed by Congress last year.

CFPB issues decision on TILA preemption of state laws

Study: FHLBank advances boost community lending

Ag Banking
January 15, 2026

Federal Home Loan Bank advances are “strongly associated” with higher lending across banks and credit unions, particularly following the 2008 financial crisis, according to new research by the Urban Institute.

State bankers associations urge Congress to help struggling farmers

IRS releases interim guidance on ACRE Act tax benefit

Ag Banking
November 20, 2025

The IRS issued interim guidance for a new tax benefit for lenders serving rural and agricultural communities, which was included in a tax package passed by Congress earlier this year.

Banking agencies release CRA data on small-business, small-farm lending in 2023

Banking agencies release CRA data on small-business, small-farm lending in 2024

Ag Banking
November 14, 2025

About 9.1 million small-business loans totaling nearly $276.6 billion were reported in 2024. As for small-farm loans, about 197,000 small-farm loans were reported for 2024, totaling about $14.5 billion.

ABA Ag Conference: ABA leadership and policy team talk regulatory wins, advocacy goals

ABA Ag Conference: ABA leadership and policy team talk regulatory wins, advocacy goals

Ag Banking
November 13, 2025

The regulatory path for agricultural lenders is much easier than just a few months ago was the message today from ABA leadership and policy experts during the first day of the association’s annual Agricultural Bankers Conference.

NEWSBYTES

Pending home sales fell in December

January 21, 2026

Survey: AI, fraud among top cybersecurity trends for 2026

January 21, 2026

ABA urges FDIC to pause special assessment collection

January 21, 2026

SPONSORED CONTENT

Seeing More Check Fraud and Scams? These Educational Online Toolkits Can Help

Seeing More Check Fraud and Scams? These Educational Online Toolkits Can Help

November 1, 2025
5 FedNow®  Service Developments You May Have Missed

5 FedNow® Service Developments You May Have Missed

October 31, 2025

Cash, Security, and Resilience in a Digital-First Economy

October 20, 2025
Rethinking Outsourcing: The Value of Tech-Enabled, Strategic Growth Partnerships

Rethinking Outsourcing: The Value of Tech-Enabled, Strategic Growth Partnerships

October 1, 2025

PODCASTS

Podcast: A Lone Star banking perspective

January 15, 2026

Podcast: The incredible shrinking penny (circulation)

January 8, 2026

Podcast: Cybersecurity in a mobile-first banking landscape

December 18, 2025

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2026 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2026 American Bankers Association. All rights reserved.