Taxes and Permit Buyout

The National Public Lands Grazing Campaign commissioned the law firm of Perkins Coie to prepare a legal opinion regarding the possible tax treatment of voluntary grazing permit buyout as proposed in various permit buyout legislation. Perkins Coie opined that the Internal Revenue Service would probably treat income from permit buyout as long-term capital gains, making it eligible for "Section 1031" exchanges. The Perkins Coie memo is available for download below. NPLGC also advises that interested permitees/lessees consult their own attorney and/or accountant on the matter.

Memo: Perkins Coie, Tax Treatment of Proposed Federal Grazing Permit Buyout Program