The One-Year Deferral
The Drought Tax Tool Most Cattle Producers Overlook
In Part 1, we covered Section 1033 — the powerful four-year deferral for breeding, dairy, and draft livestock sold due to drought. But what about feeder cattle? What about the cow-calf producer who weaned calves in June instead of October because the grass was gone? Section 1033 won’t help there. The one-year deferral will.
This provision gets overlooked because it doesn’t have a flashy code section name people throw around. It does something straightforward: if drought forced you to sell livestock earlier in the year than you normally would, you can elect to recognize that income in the year you normally would have sold — not the year you actually sold. One year of deferral. Simple, clean, and available regardless of what kind of cattle you’re running.
