Daily News Update, Oct. 22, 2007 

IRS extends replacement period for livestock sold due to drought

Producers affected by exceptional, extreme or severe drought conditions have been granted additional time to purchase replacements for livestock they were forced to sell.

When drought conditions result in an area being declared eligible for assistance by the federal government, taxpayers ordinarily have four years to replace—without recognizing any capital gain—the livestock that they were forced to sell because of the drought.

However, because of the intense, prolonged drought in many areas of the United States, the replacement period is being extended. IRS Notice 2007-80 explains the circumstances under which the four-year replacement period is extended and contains a list of counties that experienced exceptional, extreme or severe drought conditions during the 12-month period ending Aug. 31, 2007.

Texas counties listed:
Anderson, Angelina, Archer, Atascosa, Austin, Bandera, Bastrop, Baylor, Bee, Bell, Bexar, Blanco, Bosque, Bowie, Brazos, Brewster, Brooks, Brown, Burleson, Burnet, Caldwell, Callahan, Cameron, Comanche, Concho, Cooke, Coryell, Crane, Crockett, Dallas, Delta, Denton, DeWitt, Dimmit, Duval, Eastland, Edwards, Ellis, Erath, Falls, Fannin, Fayette, Fisher, Foard, Franklin, Freestone, Frio, Gillespie, Glasscock, Goliad, Gonzales, Grayson, Gregg, Grimes, Guadalupe, Hamilton, Hardeman, Harrison, Haskell, Hays, Hemphill, Henderson, Hidalgo, Hill, Hood, Hopkins, Houston, Hunt, Irion, Jack, Jim Hogg, Jim Wells, Johnson, Jones, Karnes, Kaufman, Kendall, Kerr, Kimble, Kinney, Kleberg, Knox, La Salle, Lamar, Lampasas, Lavaca, Lee, Leon, Limestone, Lipscomb, Live Oak, Llano, Madison, Marion, Mason, Maverick, McCulloch, McLennan, McMullen, Medina, Menard, Milam, Mills, Montague, Montgomery, Morris, Nacogdoches, Navarro, Nolan, Nueces, Palo Pinto, Panola, Parker, Pecos, Polk, Presidio, Rains, Reagan, Real, Red River, Robertson, Rockwall, Runnels, Rusk, Sabine, San Augustine, San Jacinto, San Patricio, San Saba, Schleicher, Shackelford, Shelby, Smith, Somervell, Starr, Stephens, Sterling, Stonewall, Sutton, Tarrant, Taylor, Terrell, Throckmorton, Titus, Tom Green, Travis, Trinity, Upshur, Upton, Uvalde, Val Verde, Van Zandt, Walker, Washington, Webb, Wheeler, Wichita, Wilbarger, Willacy, Williamson, Wilson, Wise, Wood, Young, Zapata, Zavala.

Oklahoma counties listed:
Alfalfa, Atoka, Beaver, Beckham, Blaine, Bryan, Caddo, Canadian, Carter, Choctaw, Cleveland, Coal, Comanche, Cotton, Craig, Creek, Custer, Delaware, Dewey, Ellis, Garfield, Garvin, Grady, Grant, Greer, Harmon, Harper, Haskell, Hughes, Jackson, Jefferson, Johnston, Kay, Kingfisher, Kiowa, Latimer, Le Flore, Lincoln, Logan, Love, Major, Marshall, Mayes, McClain, McCurtain, McIntosh, Murray, Muskogee, Noble, Nowata, Okfuskee, Oklahoma, Okmulgee, Osage, Ottawa, Pawnee, Payne, Pittsburg, Pontotoc, Pottawatomie, Pushmataha, Roger Mills, Rogers, Seminole, Sequoyah, Stephens, Tillman, Tulsa, Wagoner, Washington, Washita, Woods, Woodward.

To read IRS Notice 2007-80 in its entirety, click here.