IRC Section 1033(e)
Taxpayer Name
Taxpayer Identification Number
Tax Year: _2011_
Election to Defer Recognition of Gain by Purchasing Replacement Animals
a. Declaration of Election.
The taxpayer elects under IRC Section 1033(e) of the Internal Revenue Code to defer
recognition of gain from excess livestock sold because of weather related conditions. The
following information is provided in accordance with IRC Section 1033(e).
b. Evidence of the weather related condition.
The drought conditions evidenced by the rainfall report attached to this statement caused
the taxpayer to sell 100 head of raised beef cows and 4 purchased bulls rather than the 15 head of
cows and 1 bull which would have normally been sold in 2011.
c. Calculation of gain realized from the sale or exchange of the livestock.
Total Realized Gain
Net Income from the Sale
Tax Basis at Date of Sale
Total Gain Realized
Raised
Cows
$ 80,000
0
$ 80,000
Purchased
Bulls
$ 6,400
4,800
$ 1,600
d. Total number of animals sold and calculation of gain realized per head.
Number of Animals Sold
2011 actual number sold
2011 usual/normal sale number
2011 number sold in excess of normal
Raised
Cows
100 head
15 head
85 head
Purchased
Bulls
4 head
1 head
3 head
Gain Realized per Head
Total Gain Realized
÷ Number of Head Sold
Gain Realized per Head
Raised
Cows
$ 80,000
100
$
800
Purchased
Bulls
$ 1,600
4
$ 400
e. Amount of gain to be deferred until the cows and bulls are replaced according to IRC Section
1033(e).
Amount of Gain Deferred
Gain Realized per Head
x Number of Head Sold in Excess of Normal
Total Gain Deferred
Raised
Cows
$
800
85
$ 68,000
Purchased
Bulls
$ 400
3
$ 1,200