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Discussion Forum Index --> Advanced Tax Questions --> Livestock involuntary conversion
Discussion Forum Index --> Tax Questions --> Livestock involuntary conversion
Lancermc (talk|edits) said:
| 6 February 2008
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| My recollection is that when a taxpayer has an involuntary livestock sale (had to sell them during drought as could not feed them, particular County was declared by State to be affected by drought), that the taxpayer now has four years to replace with like kind property, and that like kind under new rules can actually be building improvements as long as similar ag business. I have one of these right now, inherited from prior CPA. Client wants to reinvest in building improvements and livestock. Has anyone encountered this?
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LH2004 (talk|edits) said:
| February 6, 2008
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| See sec. 1033(e) and (f). It has to be "not feasible for the taxpayer to reinvest the proceeds from compulsorily or involuntarily converted livestock in property similar or related in use to the livestock so converted," which wouldn't appear to be the case if the taxpayer wants to buy some livestock; and, it would appear the replacement property can only be real property in cases of soil or other environmental contamination.
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Lancermc (talk|edits) said:
| 6 February 2008
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| This makes sense. My interpretation may be to liberal. I'll re-read 1033.
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