OTTAWA, ON - The Government of Canada today released a list of prescribed drought regions in Nova Scotia, New Brunswick, Prince Edward Island and Quebec where livestock tax deferral has been authorized for the 2020 tax year.
The Livestock Tax Deferral provision will allow livestock producers in these prescribed regions who reduced their breeding herds by at least 15% to defer a portion of their 2020 income from sales until the 2021 tax year when the income may be at least partially offset by the cost of reacquiring breeding animals, thus reducing the potential tax burden.
The criteria for identifying regions for livestock tax deferral is forage yields of less than 50% of the long-term average as a result of drought or flooding in a particular year. Eligible regions are identified based on weather, climate and production data, in consultation with industry and provinces.
Source : Cision