Mount Vernon Optic-Herald

Ranchers across Texas have been forced to sell cattle at a historic rate and income tax implications are a concern, according to Texas AgriLife Extension Service economists.
“The historic drought has forced many more cows than normal to be sold throughout Texas,” said Dr. David Anderson, AgriLife Extension livestock economist.
This has created several financial management issues for cattle producers to consider. They are advised to consult their financial professional for advice that best fits their operation and business plan, said Jose Pena, AgriLife Extension economist.
“If weather-related sales cause a producer to sell livestock, the gain on sale can be postponed,” Mr. Pena said. “There are two different tax treatments, both of which apply only to weather-related sales in excess of normal business practice.” For more information, see the September 1 edition of the Mount Vernon Optic-Herald.