With tax time just around the corner, many cattlemen are curious how that "additional income" from liquidating herds will affect them.
According to Texas AgriLife Extension Service economist Blake Bennett, the situation is not as scary as it may look. The government has actually put some treatments in place for just these types of situations.
"There are two different treatments that we have got to look at this year," Bennett explains. "One of them applies to draft, breeding or dairy animals -- that is like your momma cows and your dairy animals -- that maybe had to be sold. Those, you are looking at having to replace them within two years. The second one applies to all livestock. It doesn't matter what it is -- it can be calves, it can be stockers, you name it. That one allows you to postpone reporting your sales for one year."
Bennett stresses that it is important to consult a tax professional before choosing to opt for one of these treatments.
