Summary of Weather-Related Sale Rules for Livestock

	Postpone Gain and Purchase Replacements	Defer Income to Next Tax Year
What livestock qualifies?	Draft, breeding, or dairy livestock	All livestock
Requirement of disaster area declaration?	No	Yes
Must livestock be in the disaster area?	No	No
Must livestock be sold in the disaster area?	No	No
Must weather-related condition have caused the sale?	Yes	Yes
Provision applies to:	Sales in excess of normal practice	Sales in excess of normal practice
Provision allows:	Deferral of gain by carrying over basis	Postponing recognition of gain by one year
Repurchase required?	Yes	No
Basis in replacement livestock	Reduced by gain that is deferred	Not applicable
Period for replacing	Two years from the end of the taxable year of sale	Not applicable
Time limit for making the election	Two years from the end of the taxable year of sale	Due date for return for year of sale