If you are obliged to sell livestock because of the destruction of pastures or fodder through fire, drought or flood, you can elect to spread over five years the profit on the livestock sale. This means that one-fifth of the profit would be included in your gross income for the year of the sale of the livestock, and one-fifth would be included in the gross income for each of the following four years.

This Primefact discusses:

• the financial implications in the five years following a forced livestock sale;
• cash flow consequences;
• tax liabilities.