The Government of Canada today released the final list of designated regions where livestock tax deferral has been authorized for 2017 due to drought, flood or excess moisture conditions.
On November 6, 2017, the Government of Canada announced the initial list of designated regions in British Columbia, Alberta, Saskatchewan and Quebec, for livestock tax deferral purposes.
Ongoing analysis has identified additional regions in British Columbia and Saskatchewan that are experiencing forage shortfalls in 2017.
The livestock tax deferral provisions allow livestock producers in prescribed drought, flood or excess moisture regions to defer a portion of their 2017 sale proceeds of breeding livestock until 2018 to help replenish the herd. The cost of replacing the animals in 2018 will offset the deferred income, thereby reducing the tax burden associated with the original sale.
Eligibility for the tax deferral is limited to those producers located inside the designated prescribed areas. Producers can request the tax deferral when filing their 2017 income tax returns.
Source : Agriculture and Agri-Food Canada