Final List of Designated Regions under the Livestock Tax Deferral Provision Released
Ottawa, ON – Agriculture and Agri-Food Canada - The Government of Canada released the final list of designated regions where livestock tax deferral has been authorized for 2018 due to drought conditions in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and New Brunswick.
On September 14th, 2018, the Government announced the initial list of prescribed regions in British Columbia, Alberta, Saskatchewan, Manitoba, and Quebec eligible for livestock tax deferral. A second designation of eligible regions was made on October 31, 2018. Ongoing analysis of drought conditions has indicated the need to expand the list of designated regions for 2018, with new regions identified for Alberta, Saskatchewan, Manitoba, and Ontario.
The livestock tax deferral provision allows producers in prescribed drought or excess moisture regions to defer a portion of their 2018 sale proceeds of breeding livestock until 2019 to help replenish the herd. The cost of replacing the animals in 2019 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 prescribed areas. Producers in those regions can request the tax deferral when filing their 2018 income tax returns.
Source : Government Of Canada