The Government of Canada today released a list of additional designated regions in British Columbia, Alberta, Ontario, Quebec and Nova Scotia where livestock tax deferral has been authorized for 2016 due to drought conditions.
In November 2016, the Government of Canada announced the initial list of designated regions in Alberta, Ontario and Quebec for livestock tax deferral purposes.
Ongoing analysis has indicated the need for a final list of designated regions for 2016. That final list will be provided as soon as authorization has been received.
The livestock tax deferral provision allows producers in designated drought regions who are facing feed shortages, to defer a portion of their 2016 sale proceeds of breeding livestock to the next year. The cost of replacing the animals in the next year offsets the deferred income, thereby reducing the tax burden associated with the original sale. Producers in those designated regions can request the livestock tax deferral provision be applied when filing their 2016 income tax returns.
Source: AAFC