Disaster Related Tax Information

Many farmers are or have experienced severe drought conditions and/or flooding, and are in areas that have been declared a disaster area by the Secretary of Agriculture. Producers may be making decisions about selling their livestock because of these conditions. There are special tax provisions for sales of livestock more than normal because of weather conditions. Personal and business losses may be deductible due to disasters (i.e. fire, flood, hurricane, tornado).

Tax Topics:

September 23, 2024

Weather-Related Sales of Livestock

There are two provisions in tax law that attempt to cushion producers from the consequences of adverse weather-related livestock sales.

August 23, 2024

Taxation of Insurance Proceeds and Involuntary Conversions

This article addresses the tax consequences of receiving life insurance payments, property insurance payments related to the farming operation, and handling involuntary conversions.

April 28, 2023

Disaster Losses and Related Tax Rules

The dollar value of property losses due to fires, floods, tornadoes, earthquakes, lightning, freezes, etc. can be substantial. Federal income tax regulations often provide relief by allowing deductions for losses of business-use property.

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Webinars:

Other Resources:

U.S Drought Monitor
USDA Disaster Designation
IRS Disaster Resource Guide (Publication 2194)

This information is intended for educational purposes only. You are encouraged to seek the advice of your tax or legal advisor, or other authoritative sources, regarding the application of these general tax principles to your individual circumstances. Pursuant to Treasury Department (IRS) Circular 230 Regulations, any federal tax advice contained here is not intended or written to be used, and may not be used, for the purpose of avoiding tax-related penalties or promoting, marketing or recommending to another party any tax-related matters addressed herein.