Tax Provisions for Cattlemen Extended

Cattlemen scored a long-awaited victory in the U.S. Congress with passage of the conference report on the American Jobs Creation Act, which contains a number of provisions important for cattlemen.

“NCBA has been working for years on these common-sense tax measures which will help producers and small business operators,” says Bryan Dierlam, NCBA director of legislative affairs.

Included in the measures is the Rancher Help Act, which extends from two years to four years the amount of time cattle producers have to reinvest in livestock without paying capital gains taxes on cattle sold due to drought or another natural disaster. The bill also extends Section 179 expensing and allows cattle producers to write off equipment purchases in the year of purchase without having to depreciate the expense over time.

“These two provisions will help cattle producers who need to make equipment purchases, and help them to better manage cash flow on livestock sold due to drought and then re-purchased when conditions improve,” says Dierlam.

When the bill becomes law, producers are encouraged to contact their tax advisers to learn how to take advantage of these rules.

Despite this win, there remains some unfinished business that cattlemen will have their eyes on when Congress returns to Washington Nov. 16. After working with key committees toward reauthorization of Mandatory Price Reporting , the measure was delayed, and although it eventually passed the Senate, it was too late to see action in the House before adjournment. ©