Farmers and ranchers who have been forced to sell livestock as a result of the drought currently affecting much of the nation now have an extended period of time in which to replace the livestock and defer tax on any gains from the forced sales, the Internal Revenue Service said Tuesday.

Farmers and ranchers who, due to drought, sell more livestock than they normally would may defer tax on the extra gains from those sales. To qualify, the livestock generally must be replaced within a four-year period. The IRS is authorized to extend this period if the drought continues.

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