Drought Sale
When a farmer is forced to sell more animals than in a typical year because of poor weather conditions. The profits from the livestock sales can be deferred to the following year, even if the proceeds exceed the losses. Investopedia Says:
The tax deferral is not exclusive to a drought situation. Losses due to unexpected epidemic (disease outbreak) ravaging the livestock or other uncharacteristically massive losses (floods, fires, etc). Related Terms:
Bankruptcy
Capital Gain
Capital Loss
Deferred Account
Deferred Income Tax
Recognized Gain
Recognized Loss |